Kerala cabinet decides to tax houses bigger than 500 sq ft

Aneesh Jacob

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Thiruvananthapuram: Considering State Finance Commission’s recommendation, the Kerala cabinet has decided to tax houses having more than an area of 500 sq ft. The house owners now have to settle one time tax. However, the amount has not yet been fixed.

At present, houses having an area more than 1,076 sqft are taxed. The rates in panchayats, municipalities, and corporations for such houses (1076 sq ft to 1614 sq ft) are Rs 1,950, Rs 3,500 and Rs 5,200.

With the new mandate, houses having an area of 500 sq ft to 600 sq ft will be under the first slab. While, houses having an area of 600 sq ft to 1000 sqft in second slab. The rate of tax in the second slab will be double the rate of the first slab.

The Commission’s original recommendation was to tax the houses above the area of 300 sq ft. However, the cabinet declined it.

Meanwhile, the local bodies should ensure whether luxury taxes are collected from the houses having an area of 3,000 sq ft to 10,000 sq ft. This is too a one time settlement.

The cabinet has directed the local bodies to have a proper framework for receiving donations. This needs to be published in a gazette.

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