HYDERABAD: In a bid to recover overdue property tax payments, the Greater Hyderabad Municipal Corporation (GHMC) has issued red notices to 60% of the city’s commercial establishments. Despite repeated reminders, over 1.5 lakh properties out of 2.5 lakh have defaulted on their payments for the past two to three years.
Additionally, the GHMC has served distress warrant notices to 75 properties that have failed to pay their property taxes for up to 10 years.
According to GHMC officials, distress warrants were issued under Section 269 of the GHMC Act due to property owners’ reluctance to clear their dues. These notices empower the GHMC to attach properties and recover the owed taxes. Last year, the corporation seized over 120 commercial properties for unpaid arrears.
Apart from commercial establishments, another 4.5 lakh residential property owners owe substantial amounts in property taxes, amounting to thousands of crores. This non-payment has left the municipal corporation in a dire financial situation.
Property tax is GHMC’s primary income source, constituting 90% of its total tax revenue. Currently, more than Rs 10,000 crore in property dues remain unpaid, with Rs 5,500 crore from residential and commercial properties, and Rs 4,500 crore from state and central government departments.
“Apart from serving notices to property owners, we are also sending letters to govt departments regarding the settlement of pending dues. Additionally, daily SMS reminders are being sent to taxpayers,” said a senior official in the GHMC taxation wing.
So far, GHMC has collected Rs 1,470 crore in property tax revenue during the current financial year (2024-25). The civic body aims to exceed Rs 2,000 crore in property tax collections this fiscal year, surpassing the Rs 1,917 crore collected in the previous financial year (2023-24).
To address grievances related to property tax issues such as revision petitions, rectification of assessments, payment postings, online arrears corrections, settlement of court cases, and self-assessment issues, the ‘Property Tax Parishkaram’ will be held every Saturday until March 29 in respective circle offices.
