Amendment bill passed; additional building tax will be collected for buildings having area over 3000 sq ft

THIRUVANANTHAPURAM: The building luxury tax, which was canceled by the central government and the high court, will now be collected by the government as an additional tax. The Legislature passed the amendment to the law yesterday. The law will be applicable to buildings having an area above 3,000 square feet.

The additional tax of the revenue department comes in addition to the one-time building tax levied by the local bodies.

The additional tax rates for buildings above 3000 sq ft are mentioned below

• 3000 sq ft to 5000 sq ft- Rs 5000 per year
• 5000-7000 sq ft- Rs 7500 per year
• 7000 - 10000 sq ft- Rs 10000 per year
• Above 10000 sq ft- Rs12500 per year

Although the state used to levy luxury tax earlier, it was abolished by the central government. The High Court also dismissed the petition challenging this. Following this, a situation arose where the state had to return the money collected so far. To avoid such a situation and to ensure more revenue, the law was amended so as to collect money in the name of additional tax.