Rs 5,564 crore: Government departments’ tax dues to Greater Hyderabad Municipal Corporation

HYDERABAD: Can you make a guess on the tax dues various government departments and undertakings owe to the Greater Hyderabad Municipal Corporation? An enormous Rs 5,564 crore! Just one department — medical — owes Rs 1,185 crore tax dues to the civic body whose finances are in a precarious condition.
Not just this. Several departments have not been clearing the tax arrears for the last several years — extending from one year to 25 years — despite repeated reminders and notices by the corporation authorities.
A Right to Information Act reply from GHMC commissioner DS Lokesh Kumar reveals that the state government departments property tax dues accumulated to Rs 5,258 crore, while the government undertakings owe Rs 306 crore to the GHMC. The biggest defaulters are the medical department, the state secretariat, police stations and excise stations. The medical department is the top defaulter with Rs 1,185 crore dues pending for the last 23 years. Police stations in the city owe Rs 420 crore for the last 12 years.
The prohibition and excise department, whose coffers swell by the day, also owes Rs 895 crore. The secretariat, which is the seat of power and administration, is also among the defaulters with an outstanding tax bill of Rs 391 crore to the GHMC.
The Central Jail and women's jail together owe Rs 71 crore arrears for the last 21 years, the RTI reply has revealed.
Forum for Good Governance secretary M Padmanabha Reddy said the tax dues have been pending for several years but the departments have not shown any urgency to clear the arrears. "Although the GHMC issues notices, the heads of department are unmoved. When it comes to payment of taxes on government properties, the departments are not clearing the tax dues and are setting a bad example," Reddy added.
In April, the GHMC had announced an ‘early bird' scheme providing 5 per cent rebate on taxes paid by people. There was a tremendous response. As against a target of Rs 600 crore, the GHMC netted close to Rs 750 crore. "As law-abiding citizens, they are paying taxes so that GHMC provides them the civic amenities. Whereas the government is virtually starving the GHMC of funds — firstly by not paying the tax dues and secondly by not releasing funds as recommended by the state finance commission," Reddy said.
He said the chief secretary should issue instructions to all the HoDs and other undertakings to clear the arrears immediately.