Generating more income through taxes

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Generating more income through taxes

Post by Gavin15 » Wed Feb 04, 2009 4:23 am

There are no programmes to encourage the supply of rental housing in the private sector. The two major government interventions, which have any impact on rental housing, is likely to affect the supply negatively. These interventions are – the Kerala Rent Control Act and the Property Taxation programme. The former measure aims to control the rents in the private sector market and protect the tenant against eviction.

Under the system of Property Taxation followed by the local authorities, the landlords of rented properties are liable to pay higher taxation than the owner occupants. The owner occupants are permitted a concession of 25 percent on the ratable value of the property. For landlords renting out properties, the concession is only 10 percent and for those residing in partly rented properties a 15 percent concession is permitted. Just as in the case of government programmes, the increased availability of housing finance is also directed towards facilitating access to the ownership-housing programme. There are no similar schemes available for rental housing in other states.

To speed up the developments in real estate Cochin Development Authority needs to forego many of the taxes and other levies. It is easier said than done. Since a few decades the Cochin Development Authorities have been collecting much money through taxation of scores of services and other developments.

Perhaps in no other city in Kerala can you see so high values for both landed properties and built-up spaces. The built up commercial and residential spaces being offered on rent is not at all affordable for people with small and marginal incomes. Thus the income gained by the City Administration is also on the higher side. This privilege is not available to the administrators in other parts of the state.

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Glen Smith
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Post by Glen Smith » Wed Feb 04, 2009 10:09 am

Gavin, could you please explain why this message may be of interest to the members of the Forum. What is the impact on home boat-building?

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