The Cabinet has decided to amend the 50-year-old Kerala Building Tax Act, 1973. It found that thousands of buildings, both domicile and commercial, remained outside the tax net due to flawed assessments of levies.
So far, the square feet area of the building determined the one-time tax. The new law seeks to change it, given the colossal building tax revenue loss incurred annually by the government. The amendment is to expedite tax collection and render the process transparent.
The Cabinet also decided to expand the powers of Judicial First Class Magistrates to fine those who evade building tax. The law proposes that the magistrate can fine a defaulter up to ₹1 lakh as a penalty instead of the earlier ₹10,000.
