KOCHI: The building owners in the city limit will have to bear additional taxes for the facilities provided by the Corporation if its finance committee proposal on Monday is accepted. At present, the building owners in the city pay building tax and provisional tax to the Corporation, but with its move to impose the Service Sub Tax (SST), the building owners will be taxed for drainage, streetlights, drinking water and sanitation facilities around the building. 

The Corporation is planning to impose up to 10 per cent of the building tax for the facilities of which 4 per cent tax is for sanitation services, 3 per cent for drinking water, 2 for maintenance of street lights and 1 per cent for drainage. Both commercial and resident owners will come under the tax gamut. 

The Corporation’s move can be read in the context of disappointing property tax collection during the current fiscal. Mayor Soumini Jain told Express that the new tax was to strengthen the financial position of the Corporation. Initially, the finance committee had decided to impose it from last April, but stiff resistance from the Opposition had forced the civic body to postpone it.  

Meanwhile, the Corporation’s new move to impose the tax has raised opposition eyebrows. They are calling it illegal. However, it may not be. A provision in the Kerala Municipal Building Rules 2011 permits the local body to collect SST tax. “The agenda will be discussed on Monday at the council. Based on the sentiments of the council a decision will be taken. Even the Municipality building rule does not force the civic body to impose it,” said the Mayor. 

“We will not let the Corporation to pass the agenda in the council. It is a policy decision and can not be imposed without consulting the public. It is the duty of the Corporation to provide proper drainage, water, street lights and sanitation. How can they impose a tax for these?,” asks K J Antony, the opposition leader.
He also added that the buildings in the city limit come under a different zone and have different tax slabs. “The Corporation has been an utter failure in providing basic facilities to the public.

Drinking water supply, sanitation, street lights, roads and drainage are in bad shape. How could they impose a tax? The voters have elected them to provide facilities not to impose or to bring new taxes. No other municipality or Corporation has imposed such a tax,” added K J Antony. Opposition Councilor V P Chandran also said the Corp should try to take some measures to collect default tax. “Several buildings in the city have been illegally constructed. Many building owners are not even paying tax. To improve revenue, taxes should be collected,” said Chandran.

How will it affect the citizens? 
If the proposal is approved by the Municipal council, then the building owners will have to pay taxes for the basic facilities. 

As per the proposal, 4 per cent tax is for sanitation, 3 per cent for drinking water, 2 per cent for maintenance of street lights and 1 per cent for drainage. Corporation council will discuss the proposal on Monday