HYDERABAD: The Greater Hyderabad Municipal Corporation will start collecting professional tax, after chief minister N Kiran Kumar Reddy gave green signal for transferring of rights to the GHMC from the Commercial Taxes department on Thursday.Presently, the Commercial Taxes department is collecting professional tax.As per the government norms, 95 percent of tax collections have to be transferred to local bodies.The transfer of collection rights to GHMC would fetch it an additional revenue of `250 crore per year.GHMC commissioner MT Krishna Babu told Express the Commercial Taxes department is not able to bring people working in all major professions under the tax net.Besides this, the CTD is burdened with revenue collections while GHMC feels this can be increased to over `300 crore by bringing all professionals under the tax net.During 2009-10, CTD collected `196 crore and remitted an amount of just `50 crore instead of `180 crore (85 percent).Few weeks ago, the GHMC had written to the state government for transfer of powers to collect professional tax.Except in the city, professional tax is collected by urban local bodies.Babu said a large number of professionals are evading professional tax, causing a loss of over `100 crore.GHMC also wants its full share of 95 per cent of the total tax collections.Presently, the state government is giving it only around `50 crore.The government also agreed to transfer 10 percent of Motor Vehicle tax.The Transport department is collecting MV tax to the tune `700 crore.The government also agreed to divert `25 crore from traffic challans for improvement of traffic infrastructure.
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