Building Tax: lowest Rate is Rs. 75 , Minimum 5% annual increment

Building Tax: lowest Rate is Rs. 75 , Minimum 5% annual increment

THIRUVANANTHAPURAM •  With the implementation of the government's decision to bring small houses under the property tax limit levied by local bodies, the minimum annual rate will be Rs 75. The cabinet has decided to bring the houses above 50 square meters (538 square feet) under the tax ambit. It has accepted the recommendations of the 6th State Finance Commission's second report. Currently, houses with an area of ​​60 square meters (645 square feet) or more are subject to tax. At present the rates fixed by the government are 3 to 8 rupees per sq meters for houses in Panchayath, Rupees 6 to 15 for municipality and rupees 8 to 20 for Corporation. The governing local bodies of the respective institutions can fix the rate within the limit.  The government has cleared that the houses between 50 sq meters and 60 sq meters will be taxed half of the normal rate and the amount will be reduced again.  An additional tax of 15 % of basic tax has to be paid for houses with a floor area of more than 3000 sq ft constructed since Last April 1. The tax will be charged irrespective of the type of materials used for laying the floor. The tax rates of mobile towers will also be amended.  Currently the rate for all local bodies are rupees 400 to 500 per sq meter. If the commission’s recommendation to implement the property tax reform once a year is enforced, at least 5% increase can be expected.    (June 24, 2022).

                                                                                                                        INPUTS BY – ANJANA Y U ON 26 - OCTOBER 2022