Corp To Go Ahead With Final Notification, Real Estate News, ET RealEstate

September 6, 2023

THIRUVANANTHAPURAM: The civic body has received just one complaint against the revised tax rates from among the 4.8 lakh property taxpayers in the city.

The corporation council approved the draft of the new tax rates and slabs in the city at the council meeting held on August 5 and the civic body started receiving complaints and grievances from August 6.

The last date for submitting complaints was August 23. During this period, one complaint was received via email in which general concern was raised on the hike in tax rates.

With no specific complaints being received on tax slabs and proposed rates, the finance standing committee will recommend the new tax rates for the final approval of the council meeting. The agenda is likely to be presented at the upcoming council meeting. The proposed new slabs for tax assessment for convention centres and hospital buildings will be forwarded to the state government.

The tax burden on residential buildings above 300sq.m, commercial-use buildings, malls, lodges, resorts, hotels and private hostels is set to increase under the revised rates.

In addition to the assessment based on revised basic tax rates, property tax will be calculated with a 5% hike as per the order issued by the state government. A hike of 5% will be applied on property tax annually for five years as per the recommendations of the finance commission.

While the civic body has retained the basic tax rate of Rs 16 per sq.m for residential constructions up to 300 sq.m, the new basic tax rate for residential buildings above 300 sq.m will be Rs 20.

The basic tax rates have been fixed based on the slabs earlier notified by the local self-government department. LSGD kept the slabs for government office buildings between Rs 10 and Rs 22.

The civic body which had till now followed Rs 80 as basic tax rate for government office buildings has brought it down to Rs 22 per sq.m.

Property tax of commercial buildings will also go up in the city. Buildings up to 100 sq.m will be assessed with a basic tax rate of Rs 90, earlier it was Rs 80.

The basic tax rate for commercial buildings between 100-500 sq.m has increased from Rs 110 to Rs 120 per sq.m. For malls, the basic tax rate has been upped from Rs 150 per sq.m to Rs 170 per sq.m.

The basic tax rate of bunks and shacks has come down from Rs 80 to Rs 22. For the buildings under industrial occupancy, the basic tax rate has been decreased. Lodges and hotels with dimensions above 300 sq.m will be assessed at Rs 90 per sq.m whereas the earlier rate was Rs 60.

It was in 2016 that tax rates were revised in the corporation limits. Owing to Covid, tax revision could not be initiated in 2021. The annual demand in terms of property tax will also increase with the revised basic tax rates coming into effect in the city.

  • Published On Sep 6, 2023 at 11:00 AM IST

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