The Times of India          18.11.2013 

Panchayats merged in 2009 to pay least building tax

KOZHIKODE: The three grama panchayats which were merged with the Kozhikode corporation in 2009 will get to pay lower building taxes compared to other zones in the city.

The civic body has recommended that the state government fix a lower tax regime, applicable for areas falling under the tertiary zone, for the three areas.

The civic body has divided its 75 wards into three zones for tax collection. Buildings in areas where offices of government and semi government institutions, commercial complexes, markets, bus and railway stations, educational institutions and hospitals are located, fall in the primary zone. Areas next to the primary zone which have the potential for development fall in the secondary zone, whereas the remaining places are listed under the tertiary zone.

The civic body has decided to fix lower building tax rates for the grama panchayats of Beypore, Cheruvannur-Nallalam and Elathur which were merged to the civic body in 2009 through a government order and which now fall under the tertiary zone. The tax slabs will be similar to that of the nearby Feroke grama panchayat.

The finance standing committee headed by deputy mayor P T Abdul made the amendments in the rates, fixed on the basis of an order issued by the state government in 2011. The civic body will notify the new tax revision, which is being implemented in the city corporation limit after a long gap of 17 years, once the state government approves the recommendations of the finance standing committee for the tertiary zone.

Abdul Latheef said the civic body has recommended the lowest tax rates for the merged grama panchayats. "The finance standing committee has decided to recommend the government to fix the lowest tax rates for places under the three merged grama panchayats, as these areas have started receiving the benefits of the merger only recently. The government has fixed Rs 8 as minimum tax per square metre for a residential building in corporation areas according to the new tax slab, where as the standing committee has recommended Rs 7 for the three grama panchayats," he said.

"Similar modifications were made for hotels and restaurants above 100 square metres and shopping malls above 200 square metres in tertiary zones," he said. "The new tax regime will be imposed with retrospective effect from April 1, 2013 once the government approves the modifications recommended by the finance standing committee. The new tax rates will be notified soon after the government approves the submitted recommendations," said the deputy mayor.