Kochi suburbs witness rise in tax collection
Kochi – As the commercial activities of Kochi city are largely shifting to its suburbs, municipalities of Kalamassery, Thrikkakara, Tripunithura and Maradu are witnessing a major increase in tax collection.
The municipalities are expecting a combined revenue of over 60 percent of the revenue of the Kochi corporation (Rs 60 crore).
The real estate growth in these suburbs is a major advantage to the municipalities. Regardless of land availability, many commercial establishments are shifting to suburbs and contributing crores of rupees.
The Kalamassery municipality has collected Rs 8 crore this year as against Rs 6 crore in 2011-12 financial year showing 20 percent growth. It collected Rs 2.75 crore from recently opened Lulu Shopping Mall as property tax and is planning to collect Rs 8 crore as professional tax from the employees of the mall next year. The municipality is expecting to collect Rs 16 crore property tax in the next fiscal.
The Tripunithura municipality reported a growth of 10 percent in revenues this year. The Maradu municipality collected Rs 2.5 crore and is expecting Rs 3.5 crore collection in the next fiscal.
According to the Chairman of town planning committee, the lack of land in corporation area has helped the municipalities to generate huge revenues. He added that many projects are coming up in suburbs which give boost to real estate sector.
The four municipalities have collected 60-75 percent of the targeted revenue. All municipalities is seeing major contribution from property tax except Thrikkakara municipality. This year, the property tax is expected to contribute Rs 5.5 crore to Kalamassery municipality, Rs 2.5 crore for Maradu municipality and Rs 4.25 crore for Tripunithura municipality.
The Thrikkakara municipality is seeing major share from IT sector which is expected to contribute Rs 7.69 crore in current fiscal. It has targeted Rs 2.81 crore as property tax.
The Maradu municipality houses two five-star hotels and over 10 automobile showrooms which includes Benz, BMW, Harley Davidson and Volkswagen. It also houses a shopping mall which is under construction with a total built-up area of over 10 lakh sq ft. The Maradu municipality is estimating to generate Rs 10 crore revenue once the mall is ready.
Some local bodies are also generating revenue by advertising and renting buildings owned by them.
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Kalamassery municipality, Kochi, Kochi Corporation, Maradu municipality, Property tax collection, property tax in Kochi, Real Estate Sector, Realty News, Thrikkakara municipality, Tripunithura Municipality
