Thiruvananthapuram: The state government has decided to increase the property tax levied by local body institutions on a yearly basis by 5 per cent. The decision was taken in the cabinet meeting which approved the recommendations listed by State Finance Commission. 

The cabinet had decided to bring the houses with more than 50 square metres (538.196 square feet) of floor area under the ambit of property tax of the local self-government department. Only half of the tax rate will be imposed on the houses with floor space between 50 to 60 square metres. Currently, those houses with at least 660 square feet of floor area have to pay the tax. 

It was decided to continue the distribution of various funds of local body institutions in the current ratio. 

Action will be taken based on the recommendations put forward by the report of the Finance Commission and will be submitted before the Assembly. The order regarding the increase in tax will be passed after that. 

The Assembly session will commence on Monday. The report will be submitted at the earliest and the tax hike will come into effect this year.