Demonetization makes GHMC richer by Rs. 190 crore

Hyderabad: The Centre’s demonetisation has come as a blessing to the Greater Hyderabad Municipal Corporation (GHMC) as it collected over Rs 190 crore as taxes in the last ten days.

With the Centre allowing the civic bodies and other agencies to accept taxes in old currency notes, people are rushing to the GHMC offices to pay their taxes in demonetized currency notes. Authorities informed that the GHMC collected Rs 190 crore in the last ten days. People can pay their taxes in old currency notes till November 24.

With the decision of the Govt of India to demonitise higher denominations of Rs.500/- and Rs.1000/- on 8th November, the receipts of GHMC have come to a standstill. There were literally nil transactions on the subsequent two days. But the Central Government’s decision on 10th November to allow transactions with demonitised currencies for payment of utility services, including Municipal Taxes for one day on 11th November 2016 has proved to be a blessing for the GHMC. On 11th November alone, the GHMC received 32,549 transactions worth Rs.54.52 Crores. The facility was then extended till 24th November.

The Union Ministry of Urban Development did an analysis of municipal receipts received by various Urban Local Bodies (ULBs) in the country with the above facility given by the RBI / Govt of India. An analysis of the Ministry for 22 Corporations across the States revealed that there was 312.04% increase in revenues in November 2016 (till 19th November) over the receipts they received in the entire month of November 2015. These Corporations include Hyderabad, Agra, Ahmedabad, Kakinada, Vijayawads, Indore, Vishakapatnam, Guahati, Ranchi, Faridabad, Coimbuttor, Jaipur, Chennai, Kalyan, Thane, Tirupathi, Guntur, Bhopal, Raipur, Nagpur and Lucknow. While their Property Tax collection in November 2015 was Rs.274 Crore, they have netted an amount of Rs. 855 Crores during this year in the corresponding month. Among these 22 Corporations, the GHMC stood first with 2350% increase. While its revenues for November 2015 were Rs.8/- Crores, the same from 1st to 19th November 2016 rose to a record Rs.188 Crores.

In his Parivarthan Rally speech at Agra in Uttar Pradesh on Sunday, Prime Minister Narendra Modi specifically mentioned about the significant tax revenues netted by certain Municipal Corporations on account of demonitisation of higher denominations. (INN)