The current administration is led by individuals who seem unaware that imposing an additional tax burden on the populace does not signify good governance. In April of last year, the state sharply increased fees for various services, including construction permits, due to a lack of such recognition. Consequently, local bodies collected 177 crore rupees within a year. It is encouraging to see the government, which had remained unmoved by widespread complaints against the unprecedented hike in tax rates related to construction, is now willing to correct this 'mistake,' especially in light of a significant defeat in the Lok Sabha elections.
Building permit fees have been reduced by fifty to sixty percent, with the revised rates taking effect from August 1. Minister of Local Affairs M.B. Rajesh announced that actions would be taken to refund the extra amount to those who paid the higher fee last year. Typically, money paid to the government is not refunded later, making this a notable change. Local bodies were allowed to increase various fee rates to boost revenue, but when fees surged up to twenty times, it naturally sparked anger and protests among the people, reflected in the Lok Sabha election voting.
This decision to reduce fees related to building construction should be seen as the first indication that the administration's leadership is ready to make corrections after evaluating their failures.
However, there remains significant disappointment regarding services obtained from local bodies beyond fee collection. Delays in receiving services from local bodies are a persistent complaint. There is a general reluctance to collect even the due taxes on time. Despite thirty percent of the state budget being allocated to local bodies, public services have not seen much improvement. The department minister claimed that Kerala has the lowest fees for construction permits. To make the public aware of this, a comparison with the current rates in neighboring states should have been presented.
The decision to offer a five percent rebate to local bodies for paying property tax in April is commendable. Similarly, the process of collecting property tax from as many people as possible should be intensified within the year. Steps should also be taken to address inefficiencies in tax collection. All government services in Kerala are criticized for high rates. Essential services such as electricity, transport, and clean water are more expensive here than elsewhere. Bus fares and electricity charges are the highest in the country. Despite these high rates, these institutions continue to incur losses. Document fees for property transfers are also among the highest in the country. This year's central budget mentioned consolidating the registration fee. In Kerala, where land prices are the highest, the overburden of administrative costs is a significant issue that should be addressed in the pending evaluations.