Rs 8 cr collected since OTS scheme commenced on March 8

EKALAVYA MALLEPALLI | Hyderabad 

In a bid to maximize property tax collections and address its severe financial crunch, the Greater Hyderabad Municipal Corporation (GHMC) has launched an aggressive drive under its One-Time Settlement (OTS) scheme. With a target of collecting Rs 300 crore through OTS by March 31, GHMC has so far collected Rs 8 crore since the scheme commenced on March 8.

The OTS scheme, aimed at encouraging defaulters to clear their outstanding dues, has significantly improved daily tax collections. Before the scheme’s implementation, GHMC collected an average of Rs 1-2 crore per day through property tax. However, with OTS in place, daily collections have surged to an average of Rs 6 crore.

Massive Pending Dues and GHMC’s Strategy

Despite the increase in collections, GHMC faces a daunting challenge with total pending property tax dues amounting to Rs 8,500 crore. Of this, Rs 3,000 crore is owed by private property owners, while government properties account for a staggering Rs 5,500 crore in unpaid taxes.

To recover dues, GHMC has intensified its efforts through door-to-door collection, involving 343 bill collectors, tax inspectors, and other officials. Defaulters are being contacted directly, and in cases of non-compliance, notices are being issued urging them to take advantage of the OTS scheme. Additionally, GHMC is promoting the scheme’s benefits, such as early bird access in the next financial year, which offers a 5% rebate to taxpayers.

Last year, GHMC collected Rs 830 crore through the early bird scheme and has set a target of Rs 1,000 crore for the upcoming financial year. So far, 12.9 lakh property owners out of 19.5 lakh registered taxpayers have cleared their dues. Officials remain optimistic that a significant number of taxpayers will settle their dues before the March 31 deadline.

Enforcement measures and awareness campaign

To ensure compliance, GHMC has issued warrants to 500 major defaulters recently who have repeatedly ignored tax payments. While large-scale enforcement actions have not yet been implemented, GHMC officials are focused on maximizing collections through voluntary payments.

In an effort to raise awareness about the OTS scheme, GHMC has launched promotional campaigns, including flyers, radio jingles, and other advertisements. However, officials believe that the message has not yet reached all taxpayers, prompting them to intensify outreach efforts in the coming days.

GHMC Commissioner Ilambarathi is personally monitoring the tax collection process, emphasizing the need for increased revenue generation. The municipal body has also made tax payments more convenient by offering multiple payment options, including online platforms, e-seva centers, citizen service centers, and direct payments through bill collectors.