To boost its revenues in a big way, the Greater Hyderabad Municipal
Corporation (GHMC) has hit upon a novel idea to collect property tax
arrears from  defaulters.

For the first time it proposes to give
incentives in the form of basic pay to the staff for highest collection
of property tax arrears. The GHMC Standing Committee, which met last
week, unanimously decided to award incentives to the employees for
highest collection of arrears of property tax for the current financial
year 2013-14.

Bill collectors, tax inspectors, valuation officers
and deputy municipal commissioners, who register a 50 percent increase
in the total property tax collection during the present financial year
(2013-14) (arrears plus current) compared to last year, will receive an
incentive of two months’ basic pay.

Employees, who register 40
percent growth in total property tax collection, will get an incentive
of one and a half months’ basic pay and those who register 30 percent
growth in the collection this financial year  will get an incentive of
one month’s basic pay and those who register 20 percent increase in
total property tax collection  will get half-month’s basic pay as an
incentive.

With the proposed incentives, the staff are expected to
work with vigour and zeal to collect property tax arrears as well as
current tax for the present financial year. At present, about 270 bill
collectors, 80 tax inspectors and 36 valuation officers are working in
the corporation. There are about 13 lakh property tax assessees in the
corporation’s limits.

Recently, a review meeting of senior GHMC
officials was held on improving the property tax collections and bring
the un-assessed and under-assessed properties into the tax net.

At
the meeting it was proposed to provide incentives on behalf of GHMC to
the staff, especially to the bill collectors, tax inspectors, valuation
officers and deputy  commissioners of all 18 circles who achieve the
target of collecting property tax arrears and also to those who bring
un-assessed and under-assessed properties into the property tax net.

According
to GHMC officials, the corporation has collected property tax to the
tune of Rs 785 crore in the last financial year (2012-13) as against the
demand of Rs 1,274 crore excluding government properties.

For the
current financial year (2013-14), the GHMC targets a Rs 1,730-crore
collection that includes arrears, interest and current year’s tax with
interest, penalty etc. Till date, the corporation has collected property
tax of about Rs 415 crore and expects to collect Rs 1,000 crore by
March 31.

One percent excess amount collected over last year’s
collection will be utilised for awarding cash incentives to the
best-performing BCs, TIs, VOs and DMCs in their respective jurisdiction.