Govt extends property tax incentive for 2026-27

Hyderabad: The State Government is reportedly planning to extend the Early Bird incentive scheme for the advance payment of property tax to three months for the financial year 2026–27, aiming to significantly enhance revenue collection across metropolitan corporations.

Traditionally, property tax collections peak during the last quarter of the financial year from January to March. However, encouraging trends observed with incentives offered at the start of the year have prompted authorities to consider a longer window.

As per the proposed plan, taxpayers clearing dues in April may receive a 5 per cent rebate, while those paying in May and June could receive 3 per cent and 2 per cent respectively. There is also a possibility of increasing the maximum rebate beyond the existing 5 per cent for advance annual payments.

This move follows underwhelming collections under the One Time Settlement (OTS) scheme introduced last December to recover arrears. Against a target of approximately Rs 1,000 crore, combined collections from the three corporations reached only Rs 323 crore. Of this, Rs 140 crore was collected within GHMC limits, Rs 112 crore in CMC limits, and Rs 72 crore in MMC limits.

Officials believe extending the Early Bird scheme will offset this shortfall and improve initial cash flow. In previous years, the scheme ran for only one month but showed steady growth.

Revenues stood at Rs 362 crore in 2017–18, rising consistently to reach Rs 900 crore in 2025–26. With the extension to three months and implementation across all three corporations, officials estimate total collections could reach Rs 2,000 crore in the upcoming financial year. The initiative is expected to improve revenue mobilisation and encourage timely tax compliance among property owners.