The Hindu 05.05.2010
Property tax: no more interest waiver
Special Correspondent
HYDERABAD: Municipal Administration Minister Anam Ramanarayan Reddy has ruled out any further extension of interest waiver on payment of property tax by citizens in 15 municipal corporations and 110 municipalities that ended on April 30.
At present, a 2 per cent interest is collected per month from the owner as penalty on non-payment of property tax from the date from which it is due to the civic body, working out to 24 per cent per annum.
The government, however, had announced a waiver of the penalty in case of those who remit the property tax before March 31 and extended the same till April 30.
Speaking to reporters here on Tuesday, Mr. Reddy said the property owners had paid Rs 600 crore tax during this period stood to gain nearly Rs. 100 crore due to the waiver. The Greater Hyderabad Municipal Corporation, on the other hand, received Rs. 355 crore, while allowing a waiver benefit of Rs 72 crore.
The Minister made it clear that the government would not compensate for the loss suffered by the civic bodies due to the waiver.
