GHMC (Greater Hyderabad Municipal Corporation) has decided to collect Vacant Land Tax (VLT) from plot owners beginning this year in a bid to increase revenue collection in the city.

Civic Body Proposes Vacant Land Tax

A total of 40% of over three lakh properties, which are liable to VLT, have already paid the tax, while the remaining needs to be collected. VLT is fixed at 0.5 percent of the property value at the time of registration.

Property owners owning open plots within the limits of Greater Hyderabad Municipal Corporation (GHMC) now have to pay VLT. 

Although there has been a provision to collect VLT, there has been not much emphasis on it by the civic body. This is because people who buy plots sometimes live in other parts of the city, whereas in other cases, they live in other states. Moreover, phone numbers of property owners were also not available in the records.

Now that the civic body has all the information it needs, experts think that it will be easier for GHMC to approach property owners with the enlisting of properties in Dharani as individuals will come forward to regularise their plots under the Layout Regularisation Scheme (LRS). GHMC officials are gearing up to collect VLT and plans to raise VLT every year from plot owners in order to fill its coffers.

By: Shailaja K