As of April 2022, the Greater Hyderabad Municipal Corporation (GHMC) is owed an enormous sum of over Rs 5,500 crore in property taxes by the Telangana government and its various entities. Some of these taxes have been outstanding for the past 25 years. To put this into perspective, the GHMC’s annual budget for the fiscal year 2022-23 is Rs 6,150 crore.
In response to a Right To Information (RTI) request filed by the Forum for Good Governance (FGG), the GHMC commissioner disclosed that regular notices demanding payment had been issued to the government entities. According to the RTI response, state departments collectively owe Rs 5,258.40 crore, while state government undertakings owe Rs 306.28 crore, totaling Rs 5,564.68 crore.
Specifically, the health department has unpaid property taxes amounting to Rs 1,185.18 crore for over 23 years, and the prohibition and excise department owes Rs 894.92 crore with unpaid taxes for over 21 years. State-run educational institutions have not paid property taxes for over 16 years, accumulating dues of Rs 384.66 crore. The police department’s unpaid taxes for the last 12 years amount to Rs 420 crore.
Among state-owned undertakings, the Hyderabad Metro Water Supply and Sewerage Board (HMWSSB) owes Rs 69.86 crore, having not paid property taxes for over four years. Defaulters also include the Hyderabad Metropolitan Development Authority, Hyderabad Metro Rail, T S Road Transport Corporation, TSIDC, Transco, Housing Board, Waqf board, museums, and the zoo.
M Padmanabha Reddy, the secretary of FGG, highlighted that despite regular demand notices from GHMC, heads of different departments have not taken action. The prohibition and excise department, contributing Rs 35,000 crore annually to the state’s revenues, has neglected property tax payments for more than 21 years.
Reddy emphasized that local bodies rely on taxes for revenue, accusing the state government of starving the GHMC by withholding property taxes and funds recommended by the state finance commission. He stated that releasing these funds would enable the corporation to enhance civic amenities. FGG has written to the chief secretary, urging instructions to clear the pending property tax dues from department heads.