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GHMC Eyes Monthly Tax Collection
GHMC Plans Monthly Property Tax Collection
The Greater Hyderabad Municipal Corporation (GHMC) is set to introduce significant changes to how property tax is collected in Hyderabad. Moving away from the existing annual or bi-annual payment system, the GHMC is considering a monthly property tax collection model to simplify the process for property owners.
Proposed Monthly Payment System
The new system will allow property owners in Hyderabad to pay their property tax in twelve equal installments throughout the year. This shift aims to reduce the financial burden on homeowners and make it easier to manage payments. Currently, property tax payments can be made either annually or bi-annually, with installments due in two halves: once between April and September and again between October and March.
The introduction of monthly payments could offer greater flexibility, especially for property owners who may find it challenging to pay the full amount at once. The GHMC hopes that this new approach will encourage more timely payments, benefiting both the corporation and the property owners.
Rebate on Early Payments Under the New System
One of the major considerations under discussion is the continuation of the popular Early Bird Scheme, which provides a five percent rebate to property owners who pay their annual property tax early. The GHMC is still debating whether this rebate will be offered under the new monthly property tax system or if adjustments will be made to the incentive structure.
In addition to rebates, GHMC is also finalizing the penalties for those who delay their property tax payments. The goal is to ensure that taxpayers are not only given the option to pay monthly but are also motivated to make timely payments.
Technology’s Role in Monthly Tax Collection
The shift to a monthly property tax system will rely heavily on technology to facilitate smooth operations. GHMC’s IT wing will play a critical role in managing the technical aspects of the new model. They are expected to develop user-friendly platforms that will allow property owners to make property tax payments seamlessly each month.
The GHMC has already implemented an online payment system for annual and bi-annual property taxes, and a similar platform will be used for the monthly model. This will ensure transparency and convenience for both taxpayers and the GHMC.
Current Property Tax Payment System
As it stands, property owners in Hyderabad can choose to pay their property tax either once a year or in two parts. The bi-annual payment option has been in place for several years and allows homeowners to split their tax payments, making it slightly more manageable.
However, this system can still pose challenges for some, especially those with large properties or high tax amounts. By transitioning to a monthly property tax payment model, GHMC hopes to further ease the process for taxpayers and increase compliance.
Action Against Property Tax Defaulters
GHMC has been active in taking steps to recover unpaid taxes. A few months ago, the corporation took strict action against property tax defaulters, sealing more than 150 properties due to unpaid tax arrears. Most of these properties were commercial establishments that had accumulated significant amounts of outstanding property tax.
The decision to seal these properties was part of GHMC’s broader effort to ensure that property tax is paid on time and in full. The monthly payment system is seen as a potential solution to reducing such arrears, as it spreads out the tax burden and makes it easier for property owners to stay on top of their payments.
Benefits of Monthly Property Tax Collection
The monthly property tax collection model is expected to provide multiple benefits for both property owners and GHMC:
- Easier Payment Management: By breaking down the annual tax into smaller, more manageable payments, property owners can plan their finances more effectively.
- Improved Compliance: With smaller, more frequent payments, it is hoped that the number of defaulters will decrease, reducing the need for enforcement actions like property sealing.
- Enhanced Revenue Stream for GHMC: Regular monthly payments could create a more stable and consistent revenue stream for the municipal corporation, allowing for better planning and execution of city development projects.
Disclaimer:
This information is based on current plans under consideration by GHMC regarding the property tax collection system. Final details may vary based on official decisions. Property owners are advised to stay informed through GHMC’s official announcements.
