Demonetisation: Tax collections rise as people pay property tax, utility bills with old notes

Greater Hyderabad Municipal Corporation (GHMC) has topped in tax collections among 22 cities in the country by collecting around Rs 190 crore with people paying their property tax and other utility bills with the demonetised Rs 500 and Rs 1,000 notes.

An analysis of the Ministry of Urban Development for 22 corporations across the country revealed that there was 312.04 per cent increase in revenues in November 2016 (till 19th November) over the receipts they received in the entire month of November 2015.

"While their (22 Corporations) property tax collection in November 2015 was Rs 274 crore, they have netted an amount of Rs 855 crore during this year in the corresponding month," a GHMC official said.

Among the 22 Corporations, the GHMC stood first with 2,350 per cent increase as its revenues for November 2015 were Rs 8 crore, which rose to a record Rs 188 crore from November 1 to 19 and majority of it comprising property tax, Layout Regularisation Collection amount came after November 10 after the Centre allowed citizens to pay their arrears for essential services with the demonetised currency, he said.

Kalyan in Maharashtra stood in second position by collecting Rs 170 crore, followed by Ahmedabad Rs 150 crore.

"It appears that the tax payers preferred to clear of utility dues with the demonetised denominations, which is a hassle-free process, rather than to line up before the banks for exchange of denominations," the official claimed.

However, the unprecedented tax payments received in November 2016 is a definite advantage to the civic body, as it occurred without the usual intensive efforts which the Corporation is prepared to pursue every year in the last quarter of the financial year, the GHMC officials added.