Kerala govt notifies hike in basic tax rates; Check out the rates

Thiruvananthapuram: The public is in a crisis as a result of the government's significant hike in local service fees under the guise of raising an additional Rs 1000 crore in funding. From the application form for building permission to the tax rate, there has been a lot of variation, which is not a tiny setback for the average person who wants a home. In addition to all of this, when the cost of building materials increases uncontrollably, it becomes impossible to regulate the expense.

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The Local Self-Government Institutions in Kerala are now able to impose higher property taxes on large homes according to a notification the Kerala Government issued raising the basic tax rates. The rates would be increased by 5 percent every year.

There are two categories of houses: those under 300 square meters (3230 square feet) and those beyond 300 square meters. According to various factors, different rates have been set for those under Panchayath, Municipality, and Corporation.

The primary tax hike in Panchayaths is on housing. The minimum and maximum taxes, which were previously set at Rs. 3 and Rs. 8 per square meter, respectively, have been raised to Rs. 6 and Rs 10. This rate applies to homes that are up to 300 square meters in size. The minimum tax for homes larger than 300 square meters is between Rs 8 and Rs 12.

In Municipalities:
Up to 300 square meters: Rs 8 to Rs 17
Above 300 square meters: Rs 10 to Rs 19

In Corporations: 
Up to 300 square meters: Rs 10 to Rs 22
Above 300 square meters: Rs 12 to Rs 25

The application fee for the building permit has been raised to Rs 300 from Rs 30. From 100 square meters and above 300 square meters slabs will be charged up to Rs.3000 per application form. It is up to Rs.4000 in the municipality and up to Rs.5000 in the corporation limits.

For a small house with an area of ​​150 square meters in the panchayat, the permit fee that had to be paid earlier was Rs 555. Now it is Rs 8,500. In Municipality, the rate has been hiked to Rs 11,500 and Rs 16,000 in Corporation. The addition of stamp duty and registration charges and the uncontrolled increase in the cost of construction materials will result in an increase of at least one-third of the total budget.

The government claims that the rate is very low when compared to other states, and the decision is public-friendly with the system of getting a permit on the same day of application.