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Thiruvananthapuram: The Kerala government is likely to revise the fair value of land in the upcoming budget in a bid to improve the financials of the state treasury. The last hike was 12 years ago. Stamp duty reforms are also under consideration.
It may also hike various taxes. The state government says it has no other option since the union government is attempting to restrict financial resources by not extending GST compensation and reducing the limits for loans.
The fair value of land was last revised in 2010. Later, there were uniform hikes in various phases. A special committee was formed in June 2022 under the land revenue commissioner in view of the demands raised to reform the fair value. The budget announcement will be made based on the findings of the committee.
Minister for Finance KN Balagopal said that many tax rates have not been revised for the past 30 years. He opined that all taxes, including professional taxes, have to be revised in accordance with the developing economic scenario.
Building tax
An extensive reformation has also been planned in the building tax to improve the revenue of the local self-governing bodies in the state. The state government will take a final decision on building tax based on the recommendations of the Finance Commission.
In 2018, the Finance Commission suggested increasing the building tax by 25 per cent. Though the building tax rate was increased 6 years ago, a comprehensive reform is still pending.
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