THIRUVANANTHAPURAM: State government to amend the law, to increase the penalty for domestic and non-domestic buildings where the area shown in the affidavit while paying the one-time building tax is changed later without permission. The fine will be increased to fifty percent of the one-time building tax. The cabinet meeting decided to recommend an ordinance to the governor. The fifty-year-old Kerala Building Tax Act is being amended.

The amendment ordinance also has a provision to change the name of 'luxury tax' to 'additional tax' on high-rise buildings and luxury houses. Luxury tax on domestic buildings and multi-storied buildings above 3000 square feet will go directly to the Center under the new Goods and Services Tax Act and neither the state nor the local bodies will get it. The amendment to change the name of Luxury Tax to Additional Tax is to avoid it going to the Centre.

The Kerala Building Tax Act came into force on April 1, 1973. One-time building tax and luxury tax are levied based on the floor area of ​​the building. These are levied and collected by the Revenue Department. The government estimates that there are currently thousands of domestic and non-domestic buildings in the state that need to be assessed.

Only local permission for flat construction

An amendment was also included in the ordinance that only the permission of the engineering department of the local authority is sufficient for constructing flats. The current condition is that the concerned tehsildar should also check and give permission. This will be avoided.

Appeal decision limit set at one year

In building tax assessment appeals, the time limit for district collectors to carry out a site inspection and take a decision will be increased from three months to one year. If a decision is not taken within three months, it would lose its legal validity. That's why it is being changed to a year.