GHMC coffers half empty
If GHMC promptly collects property tax, it could meet its expenses, but collection is lax owing to corruption
Hyderabad: Tax collection is the lifeline of any governance. For the Greater Hyderabad Municipal Corporation (GHMC), property tax is the bread and other taxes its butter. But, in a shocking observation, the GHMC seems to have failed miserably to collect even 50 percent of the taxes due.
The corporation a total of 12.5 lakh properties in its limits. Among these, 11.6 lakh are residential properties and the remaining are commercial ones. If taxes are collected duley and completely, the corporation need not go begging to the state or banks.
Since taking charge, the commissioner MT Krishna Babu held a series of review meetings with officials and asked them to collect the dues.
He hosted for the first time, on the GHMC website a list of top-1000 property tax defaulters. Incidentally, one of the defaulters is none other than the titular prince of Hyderabad, Mukaram Jha Bahadur. Postnoon, in its columns, exposed this issue,and the AP Lokayukta took up the case suo motu and issued notices to GHMC commissioner.
The Corporaiton officials, later slapped demand notices on all the defaulters and asked them to pay the property tax. Speaking to Postnoon, GHMC Additional Commissioner Shiva Parvathi has said that they had issued notices to all the top-1000 property defaulters for collection of the tax and added that if the defaulters did not pay the required amount within the stipulated time they would take other steps including seizure of their properties.
The commissioner found out later that property tax, the arterial blood vessel of GHMC, is not collected fully because numerous properties are in legal dispute. Many structures are unlawfully constructed or violat building norms. And, he knows this could not happen without the involvement of Corporation officials concerned.
But, understandably, the commissioner can’t publicly state it. “We are taking all steps to increase revenue from property tax. I have instructed the officials concerned regarding this,” he said. Recently, the commissioner has felicitated an official of the corporation for being instrumental in collecting over `1 crore of property tax from one of the top defaulters.
About the Author (Author Profile)
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
Loading ...
Exchange Rate
“Since taking charge, the commissioner MT Krishna Babu held a series of review meetings with officials and asked them to collect the dues.”
Showing to the public such reviews occur and ACTUALLY acting on what happens AFTER those reviews, are two different things. You can conduct meetings and “pretend” you’re doing everything to combat collection issues. Or you can ensure that your people are doing their work in collecting taxes.
Before Mr. Babu, GHMC had been steered to collect revenues and tax unlawful construction. Why? Because the job was done right. GHMC had also, unfortunately, been the target of accusations of “taxing too much”. Seriously? When GHMC DOES their job, they are not allowed to do it. When they’re NOT doing their job, everything is fine and dandy and no one complains. Do you see any builders or corporators complaining? No. Why? Because they’re making money off not paying taxes.
“If taxes are collected duley and completely, the corporation need not go begging to the state or banks.”
I completely agree. I wish the people woke up and saw that our system, when made to do its job, is targeted and made to look like the bad guy. When it is ONLY the “bad guys” who say so.