THIRUVANANTHAPURAM: The state cabinet on Wednesday approved the sixth Finance Commission’s recommendations to hike property tax and revise the rates every year as well as to raise entertainment tax. The recommendation to levy tax for houses built on more than 50 square metre (538.19 sq ft) area was also approved. The tax rate will be half for houses between 50 and 60 sq m. Additional tax of 15% will be levied on houses built on over 3,000 sq feet area on or after April 1.
It was decided to make tax-related information available on the local self-government (LSG) website. A tax arrears list will be prepared on ward/division basis. Steps for property tax revision in rural and urban areas should be completed before 31 March, 2023, the cabinet decided. Local bodies have to prepare and publish a GIS-based plan to collect tax. A facility for people to check tax details on the LSG website and e-payment would be set up.
Entertainment tax for cinema halls would be hiked to 10%. LSG bodies will prepare software for ticket distribution and determining the tax. Theatres that use own programme should prepare a bridge software to pass the data to the LSG concerned, it was decided. The cabinet had recommended to reinstate Section 241 of the Kerala Municipality Act. It would make it mandatory for a person to inform the LSG body about the demolition of a building he or she owns or else pay tax until a formal communication is made.
Licence fee to place ad boards on roadsides
The commission also recommended revision of tax rate for mobile towers. Licence fees would be levied to place advertisement board on roadsides. As per the recommendations, LSG bodies will have the right to offer discounts up to 10% on the rent levied from occupants of buildings they own. People from SC, ST communities and startups will be eligible for the discount.
The LSG department will devise a programme to help local bodies issue revenue bonds. The corpus of the disaster relief fund of LSGs will be increased every year. The recommendations of the commission headed by former chief secretary S M Vijayanand were submitted to Governor Arif Mohammed Khan in May.