Kochi: The Kerala Government plans to raise luxury tax of houses within a distance of 1 km on either side of the Kochi Metro line. The Revenue department has asked officials to submit details on the Land Revenue Commissioner’s suggestion in connection with the tax increase.
The luxury tax increase is mooted for houses within 1 km along both sides of the metro line from Aluva through SN Junction in Thrippunithura.
Property area
At present, the luxury tax applies to houses with a built-up area of more than 278 square metres. As per the revised tax rates, annual luxury tax of Rs 5,000 has to be paid for buildings with an area ranging from 278 sq m to 464 sq m. Once the proposed increase is implemented, this would rise to Rs 7,500 per year.
Currently, the luxury tax rate for the buildings with an area ranging from 464 to 695 sq m is Rs 10,000 and those above 695 sq m attract a tax of Rs 12,500.
The luxury tax is currently charged for as many as 5,000 houses spread in 21 villages in Kanayannur Taluk, while it is charged for 450 houses in Ernakulam Village limits. About 675 houses in Elamkulam Village also come under the luxury-tax bracket.
