THIRUVANANTHAPURAM: The decision of the state government to hike property tax in order to strengthen the revenue of local self-government institutions has come as a huge blow to the public. The hiked taxes came into effect in the state on April 1, as per the gazette notification issued by the government. The decision of the government is to hike property tax by 5 per cent annually for the next five years.
As per the notification, the government has fixed different tax rates for houses below 300 sq m and those above 300 sq m in panchayats, municipalities and corporations. In municipalities, tax for residential buildings up to 300 sq m area has been hiked from Rs 8 to Rs 17 per sq m. For buildings above 300 sq m area, the minimum and maximum tax rates have been raised to Rs 10 and Rs 19.
In corporation limits, the minimum and maximum property taxes of houses up to 300 sq m have been fixed at Rs 10 and Rs 22. The minimum and maximum taxes for houses above 300 sq m have been fixed at Rs 12 and Rs 15. In grama panchayats, the minimum and maximum rates have been raised to Rs 6 and Rs 10 per sq m for homes that are below 300 sq m. For houses beyond 300 sq m area, the minimum and maximum rates will be Rs 8 and Rs 12.
Leader of Opposition V D Satheesan blamed the government’s move to hike building tax. He said the UDF will hold protests across the local bodies on April 26. Financial expert Mary George said that property tax hikes are inevitable. “The local bodies are struggling and they are unable to utilise the plan fund because of restrictions from the state government. The property tax is the main financial source for local bodies and it’s their own fund,” she said.