Kerala is all set to revise the tax rates on properties and also levy additional tax on its huge number of vacant houses. Presenting the 2023 Budget on Friday, Finance Minister KN Balagopal announced an extra tax levy on vacant houses in the state. “The government intends to revise property taxes, application fee, scrutiny fee and permit fee for construction of residential and non-residential buildings. A proper method of taxation of multiple ownership of houses by a single individual and newly constructed unused houses will also be taken up. A comprehensive revision of these will be taken up by the Local Self Government Department,” FM said.
At a press meet following the budget presentation, Balagopal did not specify the rate of taxation of vacant houses but said that a couple of studies had been undertaken to determine the number of houses that were sitting unoccupied. “There are no clear statistics on it, and we will be working out how to bring in the taxation.” He also said that measures would be taken to make use of those vacant houses. “If these measures are implemented, at least Rs 1,000 crore is expected as an additional fund of local bodies which can be productively used by them,” he said.
As per a 2011 survey, about 11% of houses in Kerala remain vacant, which is much higher than the national average of 7.45%. The Kerala Sasthra Sahithya Parishad (KSSP) released a report in 2017 titled, ‘Micha Veedukalum Kerala Paristhithiyum’ (Extra Houses and Kerala’s Environment). The report says that there are 11.89 lakh vacant houses in Kerala. They took the data from the 2011 census, and the number has increased as migration from Kerala has continued at a steady pace. The FM has also announced tax revisions on land buying.