KN Balagopal | Photo: Mathrubhumi
Thiruvananthapuram: Finance Minister KN Balagopal asserted that the land tax would be increased for all sections.
Though a new slab had been created for landowners over 1 acre and announced a separate tax rate in the budget, the ministry has now scrapped it. Instead, taxes for the existing slabs have been increased at least two-fold. The Finance Minister elaborated on the change in policy while replying over the budget discussion. The new rate will come into effect from April 1.
At present, Rs 2.5/R is being incurred up to 8.1 R of land in grama panchayats (1 R= 2.47105 cent). This has been increased to Rs 5.
For land above 20 cents (8.1 R), the tax rate will be Rs 8/R instead of the earlier rate of Rs 5.
In municipalities, Rs 10/R will be charged for 6 cents or 2.43 R of land (earlier, it was Rs 5). Rs 15 will be incurred for land above 6 cents.
Rs 20 has been fixed for the land of 4 cents (1.62 R) in corporations, which accounts for an increase of Rs 10/R. Taxation for a holding above 1.62 R has been hiked from Rs 20 to Rs 30.
The new slabs introduced by the revenue department were included initially in the budget. It had been decided to increase the tax rate of land above one acre without introducing much tax hike for the lower slabs. The department expected an additional revenue of Rs 80 crore by this.
However, the Income Tax department estimated that the expected revenue rise will not be obtained from this.
After considering that the existing tax rates for all slabs are meagre, the ministry introduced changes in the budget recommendations.
RELATED STORIES
.png?$p=43636c5&f=1x1&w=100&q=0.8)
%20(1).jpg?$p=7bbca75&f=1x1&w=100&q=0.8)
.png?$p=2bd0e28&q=0.8&f=16x11&w=104)
