With property owners not coming forward to pay tax on their open plot of lands, the GHMC (Greater Hyderabad Municipal Corporation) is contemplating to reduce vacant land tax (VLT).
As per the GHMC Act, 0.5% of registration value is being collected as vacant land tax by the Hyderabad corporation. After a building is constructed on the plot of land, the
owner will have to pay property tax based on assessment.
As collection of VLT was not even crossing Rs.1 crore and based on suggestions from the standing committee members, the GHMC is contemplating to decrease the tax from the current 0.50 to 0.25%.
There are less than 100 vacant land tax payers in the GHMC records. Till September, 2011, the corporation had collected only Rs.3 lakh against its original estimation of Rs . 30 crore. Now in the revised budget estimations for the 2011-12 financial year, the corporation made it to Rs 5 crore as they have time till March 31, 2012 and most property owners pay their dues in the last 2 months. For the 2012-13 budget estimates, the corporation has pegged VLT at only Rs.6 crore. Earlier for the 2010-11 financial year, the GHMC had set a target of Rs. 10.26 crore towards VLT, but it could realize only Rs. 93 lakh.
If the VLT is reduced, owners may voluntarily come forward to pay tax to the corporation.
As per the GHMC Act, 0.5% of registration value is being collected as vacant land tax by the Hyderabad corporation. After a building is constructed on the plot of land, the
owner will have to pay property tax based on assessment.
As collection of VLT was not even crossing Rs.1 crore and based on suggestions from the standing committee members, the GHMC is contemplating to decrease the tax from the current 0.50 to 0.25%.
There are less than 100 vacant land tax payers in the GHMC records. Till September, 2011, the corporation had collected only Rs.3 lakh against its original estimation of Rs . 30 crore. Now in the revised budget estimations for the 2011-12 financial year, the corporation made it to Rs 5 crore as they have time till March 31, 2012 and most property owners pay their dues in the last 2 months. For the 2012-13 budget estimates, the corporation has pegged VLT at only Rs.6 crore. Earlier for the 2010-11 financial year, the GHMC had set a target of Rs. 10.26 crore towards VLT, but it could realize only Rs. 93 lakh.
If the VLT is reduced, owners may voluntarily come forward to pay tax to the corporation.
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