Property tax for new buildings hikes to five per cent in Kerala

The basic tax rate for the construction of new buildings has increased in the state. As per the new revised rates, the tax levied per square metre for houses in gram panchayats has been increased from the existing Rs 3-8 to Rs 6-10.
In municipalities, the tax on houses, which was Rs 6-15 per square foot, has been increased to Rs 8-17.

Whereas in corporations, the rate has been hiked from Rs 8-20 to Rs 10-22. This hike was not mentioned in the budget but came into effect on April 1. With this, the property tax, fixed on the basis of the revised rates, will go up by five per cent every year. Although local body officials state that the changes are applicable to new buildings.

With the revised tax rates for new buildings, there will be two types of building taxes in the state; one for those buildings constructed before March 31 and another for those constructed afterwards. Meanwhile, swimming pools, gymnasiums and turfs built as part of houses or hotels will be taxed in their respective categories.

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