Property tax relief: GHMC extends One-Time Settlement scheme for 2025–26

Hyderabad: In a move to clear long-standing dues and bolster income, the Greater Hyderabad Municipal Corporation (GHMC) has officially announced the continuation of its One-Time Settlement (OTS) Scheme for the 2025-26 fiscal year.

‘90% waiver on accumulated interest’

Effective immediately, property owners with outstanding tax arrears can avail themselves of a massive 90 per cent waiver on accumulated interest.

To benefit from the scheme, taxpayers are required to pay the full principal amount of their tax arrears along with just 10 per cent of the total interest owed in a single instalment. Upon successful payment, the remaining 90 per cent of the interest is permanently waived.

Resolve tax disputes and release funds for infrastructure

The GHMC officials stated that the initiative aims to provide financial relief to citizens while resolving thousands of long-pending tax disputes that have tied up municipal revenue for years.

Timely payments are essential to strengthening city infrastructure, from roads to sanitation and enhancing civic services across the city.

Where to pay?

To ensure maximum convenience, the GHMC has opened multiple payment channels:

1. Digital: The MyGHMC mobile app and the official GHMC web portal.

2. In-person: Any Mee Seva Kendra or GHMC Citizen Service Centre (CSC).

What is the GHMC OTS Scheme?

The One-Time Settlement (OTS) Scheme is a strategic financial tool used by the municipal corporation to recover ‘stuck’ revenue.

Property tax in Hyderabad attracts a significant interest penalty (usually 2% per month) when payments are delayed.

Over several years, this interest can sometimes exceed the original tax amount, making it nearly impossible for middle-class homeowners or struggling businesses to settle their debts.

The OTS effectively ‘resets’ the burden, allowing the city to collect the vital principal amount while offering the taxpayer a fresh start.

How many years has the scheme been running?

The GHMC has been implementing versions of the OTS scheme periodically:

Initial launch: While interest waivers have been used sporadically since the early 2000s, the modern ‘90% waiver’ format gained significant traction around 2016.

Recent history: Since 2020, the scheme has been reintroduced almost annually or biannually (notably during the pandemic and subsequent years) to help citizens recover from financial hardships and to meet annual revenue targets.

Current status: By extending it into 2025-26, the GHMC is signalling that this may be one of the final opportunities for taxpayers to settle old arrears before stricter enforcement measures are taken, as the wards have been reorganised recently.