Hyderabad Govt Faces Financial Strain Over Rs. 5, 500 crore Unpaid Property Taxes

People have some responsibility if the city's civic infrastructure falls short of their expectations. The residents owe the Greater Hyderabad Municipal Corporation 5,500 crore in unpaid property taxes. The corporation is already experiencing a severe financial crisis.

According to GHMC records, almost 7 lakh residents have not bothered to pay their tax obligations over the previous eight years. Approximately 17 lakh taxpayers, comprising 13 lakh residential and 4 lakh commercial property owners, are currently residing in the GHMC region. Nearly 90% of the GHMC's total tax revenue comes from property taxes, which serve as the organization's primary revenue stream.

Less than half of the fiscal year is left, so the civic body must once more deal with the issue of collecting unpaid taxes from noncompliant citizens. The state government has not yet implemented a one-time scheme (OTS) that would relieve taxpayers of their accumulated interest arrears, which has further complicated the situation and forced many to make payments. Already, GHMC has served 4 lakh distress warrant notices under Section 269 of the GHMC Act.

When property owners fail to pay their taxes, they may be issued a legal directive known as a distress warrant notice. It gives the local government the power to seize and auction defaulters' property.

In order to promote timely tax payments, GHMC officials stated that their bill collectors and tax inspectors make frequent door-to-door visits. According to officials, property owners can pay their taxes using a variety of methods, such as direct payments to bill collectors, online platforms, e-Seva centers, and citizen service centers.