Tax hike for new buildings affects luxury houses

Thiruvananthapuram: The decision to hike the basic tax for new buildings will adversely affect those who wish to invest in luxury houses. The government has revised the tax structure, which now applies to two categories of houses: those under 300 square meters and those over 300 square metres (about 3200 square feet). As a result, the tax will affect those who construct new buildings, including luxury homes, that are larger than 300 square meters. 

For properties exceeding 300 square meters in size, the tax rate will range from Rs 8 to Rs 10 in Grama Panchayats, Rs 10 to Rs 19 in municipalities, and Rs 12 to Rs 25 in Corporations per square metre. The tax amount will be determined by various factors, such as the distance from the road to the house and the availability of amenities.

Earlier, commercial buildings fell under five slabs. The first slab includes hotels, restaurants, shops, and warehouses with a floor area of ​​up to 100 square meters, and the second slab includes buildings with a floor area of ​​more than 100 square meters. 

The third slab has buildings with a floor area of ​​up to 200 square meters, like supermarkets and shopping malls, and the fourth and fifth slabs include banks, small stores, computer centres and fuel stations. 

However, under the new tax revision, buildings are divided into different categories like within 00 square meters, 100 to 500 square meters, above 500  and malls.