Hyderabad: Tax
evaders beware. The Greater Hyderabad Municipal Corporation will charge
two-and-a-half years’ property tax with retrospective effect along with
2 per cent extra monthly interest from those who have not paid their
taxes.

If a building is found un-assessed, that is tax is
not being paid on it, then the GHMC’s tax officials will charge extra
property tax. For example, if the tax assessment for a year comes to Rs 1
lakh, the citizens will have to pay an additional property tax of Rs
2.50 lakh for two-and-a-half-years with retrospective effect.

Besides,
2 per cent monthly interest will also be charged on the Rs 3.50 lakh. A
similar punishment would be imposed on those who are found guilty of
paying less property tax.  There are thousands of buildings in the city,
which are under-assessed.  Similarly, there are hundreds of buildings
whose owners haven’t paid property taxes, as per a rough assessment.

A
large number of additional floors, flats and portions of buildings that
were regularised under the building penalisation scheme are yet to be
brought under the tax net. There are also a large number of
buildings to which two or three extra floors were added without paying
enhanced taxes. Besides, there are residential buildings that are being
used for commercial purposes but their owners continue to pay
residential property tax.

However,
the GHMC would reward citizens with a five per cent rebate if they pay
their property tax each year before the due date of April 30.

The
government has also permitted the owners of buildings that have been
levied extra taxes with retrospective effect to present their case
against such assessment.

GHMC
additional commissioner (Finance) Ashok Reddy said that as per the
amended GHMC Act it hadn’t been made mandatory for the municipal body to
serve tax bill to citizens. Building owners have to pay property taxes
annually on their own whether bills are served on them or not.

Deputy
municipal commissioner M.S.S. Soma Raju said the government had also
imposed a restriction on leasing out of municipal owned properties.
Earlier, GHMC didn’t have powers to lease out properties for 99 years or
for even 33 years. The occupants of municipal markets and other
municipal owned properties have to vacate their premises before fresh
lease agreements can be made.