HYDERABAD: The GHMC is likely to reintroduce its One-Time Settlement (OTS) scheme on payment of property tax. It is ready to waive up to 90 per cent of accumulated arrears on property tax, provided taxpayers clear their entire dues until 2020–21 by just paying 10 per cent of interest on overall dues.
When the civic body introduced this scheme last time, it could mop up only Rs 240 crore. This time around, officials are hoping to mobilise Rs 500 crore. The corporation has also written to the state government in this regard.
When GHMC first introduced the OTS scheme, its deadline had been September 15, 2020. The corporation kept the date multiple times to improve collections. The corporation expected Rs 1000 crore through the OTS scheme but the Covid-19 second wave and lockdown spoilt sport.
Overall, the civic body fell short of around Rs 1,100 crore by way of property tax revenues. At that time, the (TS-bPASS (Telangana State Building Permission and Layout Approvals Self-Certification System) saved the GHMC to an extent.
GHMC has so far realised Rs 412.66 crore through building permissions during the current financial year. This is Rs 158 crore more than last year during the same period. By reintroducing the OTS scheme, the corporation hopes to mop up Rs 2,000 crore during 2021-22 by way of property tax.
A senior civic body official, requesting anonymity, told Deccan Chronicle that the GHMC will soon introduce the OTS scheme, once the proposal to this effect is okayed by the state government.
The number of property tax defaulters is colossal. Of 4,03,902 defaulters in just central zone, only 2,48,504 had cleared their dues in 2020-21. Statistics show overall, 73 per cent people default on property tax payment by making corporation’s revenue officials “happy.”
An official has gone on to claim that if the civic body collects even 60 per cent of property tax from defaulters, it can increase its collection to Rs 2,500 crore.
The scheme waiving 90 per cent of accumulated arrears on property tax is conditional in that property owners must pay 10 per cent interest on their accumulated arrears in one go. The OTS scheme will be applicable to all urban local bodies, including GHMC.
