Hyderabad, Dec. 19: Tax payers are crying foul over the
fact that the Greater Hyderabad Municipal Corporation (GHMC) has levied a
penalty on property tax without serving notices to the concerned tax
payers. In fact, several property owners have not received notices till
date.

The contract of issuing the notices was given to the
postal department but the officials of the department claim that many of
the addresses that the GHMC provided are incorrect.

The GHMC had transferred the job of issuing notices to the
postal department following complaints against the manner in which the
GHMC was issuing property tax bills.

There are around 12 lakh property tax payers in Greater
Hyderabad, of which, 2.50 lakh have paid their tax before October 31.
Notices were to be served to the remaining property owners but not even
30 per cent of the property owners were served with notices.

As per the Municipal Corporation Act, the tax officials
can levy an interest of two per cent on the total tax along with arrears
if the same is not paid by the due date. Therefore, the officials of
the tax wing at the GHMC are asking property owners to cough up an
interest or penalty for late payment.

According to Mr Jayabhushan Rao, a taxpayer from Ameerpet,
“Every year, I pay my tax within 15 days after I receive the notice for
the same. I pay an annual amount of `7,180 as property tax but this
year, I still haven’t received a notice. However, two days ago, an
official of the GHMC came to my house and asked me to pay a penalty
along with the principle tax amount.”

Meanwhile, the officials of the GHMC said that the
issuance of notices is only a formality to remind taxpayers of the due
date and it is not mandatory. “Taxpayers know the due date and have to
pay their property tax on time or pay the penalty for late payment. For
example, if the electricity bill is not paid on time, the supply is
disconnected with or without serving an advance notice,” said the
additional commissioner of the GHMC (finance), Mr Hari Krishna.