The steep increase in building permits without any criteria has come into effect since yesterday. The LSGD minister said that no building fee or building tax is coming to the government and these are collected by the local bodies. It is the common people who struggle when such extra burdens are imposed and the government completely forgets this.
Tax increase for the new financial year is not exclusive to local bodies. There has been an increase in taxes in all departments. They say that construction permits can be obtained within an hour by submitting an application online to municipalities and corporations. It's nice to hear this of course, but the reality is that it does not come into practice. The minister complains that people are being misled about a small fee hike when such good things are being implemented. How should one feel if the permit charge to build a 1200 square feet house in the city limits which was Rs 712 till yesterday is hiked to Rs 13,500 today? How can people not react against this exorbitant rate? People come together against any kind of tax hike only when it is unbearable. What is being questioned is the irony of raising taxes at an unjust rate by the ones in power, who had organized massive protests against all kinds of tax hikes once.
Buildings up to 1614 square feet were included in the small construction limit till now, but now it has been reduced to 860 square feet. Needless to say, this change is aimed at higher permit fees. The new building tax structure of local bodies will further weaken the construction sector, which is already reeling under the huge price hike of construction materials. The government's move to bring school buildings under the property tax net is to ensure more revenue by any means. This will mainly affect private and unaided schools. About 3000 schools in the state under this category will be subject to the new building tax. Although the school managers are the ones who have to pay the tax, ultimately the burden will fall on the parents of the children. Along with the fees paid by the children, they will also have to pay their share of the school building tax. The tax assessment will be based on the age and size of the school building. Even small schools with four or five divisions will have to pay four to five lakh as building tax every year. Not many people know that the new tax on un-aided schools was passed by the legislature, through an amendment to the Panchayat Raj Act. In the constant commotion in the Assembly, such important legislative amendments are being overlooked not only by the people but also by the members of the Assembly. They know the severity of each new tax only when it hits them like a thunderbolt.