Information Mission demands building tax share worth Rs 141 crore; LSG Department with strong opposition

THIRUVANANTHAPURAM: The Information Kerala Mission has demanded a share of the building tax, which is the main source of income for local bodies. The Mission Executive Director has written to the government, requesting that five percent of the tax collected by each local body annually be allocated for digitalization activities. Information Kerala Mission is the government agency that develops software for local bodies.

The government itself bears the salaries and other operating expenses of the employees here. That is when such a demand was made in the name of digitalization activities. The Principal Director of the Local Self-Government Department submitted a report to the government against this. It was informed that paying tax share is a violation of the Panchayat Raj Act and the Kerala Municipality Act and will disrupt the development activities of local bodies.

Information Kerala Mission had been given permission from March this year to charge a digital cost from the public for online services in local bodies through K-Smart. Five rupees each is charged for birth, death certificates and BPL certificates, and ten rupees each for all other services such as marriage certificates, ownership rights, building permits and license renewals. A letter was sent on June 6 demanding a tax share in addition to it, after this was granted.

More than salary!

Five percent of building tax is a larger amount than what many local bodies spend on a month's salary. The building tax collection in the Thiruvananthapuram Municipality in 2024-25 was 98.61 crore. Five percent of this is 4.93 crore. The amount required to pay a month's salary to regular and contingent employees alone is 4.45 crore.

👉 Building tax received in the last financial year - 2836 crores

👉 Amount demanded by the Information Mission at 5% - 141 crores

Despite receiving crores

👉 0.25% of the development fund of the Panchayat, Municipality and Corporation is being given to the Mission

👉 0.1% of the development fund of the Block and District Panchayats

👉 The amount received in this regard in the financial year 2025-26 is 10.34 crores

👉 Budget allocation for the current financial year is 9 crores