Thiruvananthapuram: The Kerala Government has issued a notification raising the basic tax rates thereby enabling the Local Self-Government institutions to levy more property tax for big houses. The new rates are effective from April 1. The rates would be increased by 5 per cent every year.
The increase in the basic tax rates of the buildings under different sections, including houses, is being made after 12 years.
The houses have been classified into two types; those with an area of up to 300 square metres (3230 square feet) and those above 300 square metres. Varying rates have been fixed for those under Panchayath, Municipality and Corporation depending on other factors. The minimum basic tax rates for all types of houses have been doubled. The houses are classified into 2 types based on the area for the first time.
In Panchayaths, the basic tax for houses has been increased mainly. The minimum tax which was Rs 3 per sq metre and the maximum which was Rs 8 per sq m earlier, has been increased to Rs 6 and Rs 10 respectively. This rate is for houses up to 300 sq m in area. The houses with an area of more than 300 sq m will have a minimum tax of Rs 8 and Rs 12.
The new rates are as follows:
In Municipalities:
Up to 300 square metres: Rs 8 to Rs 17
Above 300 square metres: Rs 10 to Rs 19
In Corporations:
Up to 300 square metres: Rs 10 to Rs 22
Above 300 square metres: Rs 12 to Rs 25
The Government had last revised the basic tax slab for buildings in 2011. This was implemented in Panchayaths from 2013 and in Municipalities and Corporations from 2016. The Government has now decided to change the system of revising the tax rates every 5 years by 25 per cent. Instead, the tax would be increased by 5 per cent annually.
The final rates would be fixed by the LSG institution.
The administrative committees of the respective LSG institutions are authorised to fix the appropriate final tax based on the minimum and maximum tax rate, within the range fixed by the Government. The tax would be determined considering the proximity to the road, the demarcated zone as per the master plan and other factors based on the Government’s tax slab and complying with the property tax rules. The existing buildings will have a 5 per cent increase from the old tax.
The State LSG Minister clarified that the new base rates would be applicable only for the buildings registered and given numbers by the respective LSG institution after April 1.
However, the LSG officials and the elected representatives alleged that the statement in the notification is confusing on this point.The old rates would continue to be applicable for buildings for which tax has been determined on or before 2023 March 31, the Department has informed. This would include the 5 per cent annual increase which was already notified.
