More buildings in Kochi to come under property tax purview, Real Estate News, ET RealEstate

September 7, 2023

KOCHI: In an effort to enhance revenue, Kochi corporation is mooting a proposal to revise primary, secondary and tertiary areas in the city. It is based on the category of area that the rate of property tax is being fixed.

The category and property tax rates were fixed in 1995 based on the width of the road to which a property has access. There had not been any revision in the category in the past three decades.

All structures which have access to roads with a width of five metres and above fall in the primary category while the structures which have access to roads with less than five-metre width belong to the secondary category. The buildings which have access to just pathways, alleys or no access to even pathways are considered as tertiary category.

According to the corporation authorities, it is high time the local body revised the category. “Over the years, many areas in the city have undergone huge development. Many new roads were constructed in each of the 74 divisions while some of the existing narrow alleys were widened into roads. So, we will be conducting a study to identify the change. On the basis of the study, we will make a decision on revising the category,” mayor M Anilkumar said.

Kochi corporation is depending mostly on central and state government funds for implementing projects. The local body is unable to generate even Rs 9 crore as its own fund every month. The corporation has to shell out Rs 9 crore as salary bills each month. In the 2022-23 budget of the corporation, the authorities projected the total revenue for the fiscal at Rs 1,116 crore.

But when the annual financial statement for the fiscal came out, the revenue was just Rs 600 crore. As per the budget, the expenditure for the fiscal should have been Rs 1,075 crore. But the actual expenditure was around Rs 440 crore.

Though the corporation authorities used to declare in the budget that measures to collect more revenue will be taken, no concrete steps in this regard had been taken by them.

“The corporation should tap the tax avenues for generating income. Many areas which have flourished over the years are still in the tertiary category where tax slab is the lowest. Also, authorities should take measures to collect tax and avoid tax erosion. There should be measures to secure funds which are due from the state government,” said M G Aristotle, secretary, UDF parliamentary party, Kochi corporation.

  • Published On Sep 7, 2023 at 06:30 PM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment