Property transfer fee may increase in Kochi
Kochi- Kochi Corporation has put up a proposal of increasing building transfer fee in a measure to increase its fund-flow.
In a city like Kochi, a large number of building transfers often take place, which are roughly around 3000 to 5000 per year. So the proposal of hike in building transfer fees is likely to be a good source of revenue for the Kochi Corporation.
Currently, a nominal fee of Rs 25 is being charged for transferring the ownership rights of any building in Kochi, which is a fixed amount.
A senior official of the civic body said that the Corporation is planning to introduce a hike in transfer fee as per the size and total value of the building. A slab will soon be prepared, based on which the transfer fee will be levied on building transfer.
The slab in the range of Rs 250 to Rs 3,000 is planned to be prepared. Large, medium and small buildings will be included under different slabs, he added.
The civic body is planning to garner an additional revenue of Rs 6 crore annually from the transfer fee hike. The proposal will be presented at the next council meeting.
As per the existing system, all buildings in Kochi, whether residential, commercial, big or small, have to pay only a fixed amount of Rs 25 for transferring the ownership. The corporation which has been badly hit by cut in plan funds, is now looking for other sources of revenue.
According to sources, the Kochi Corporation was expecting around Rs 15 crore additional revenue from revised tax of 2012-2013 fiscal. The tax revision had been made for major developmental projects in the previous budget. As only few weeks are left for the new fiscal to start and present the budget, the civic authorities are now making extra efforts to find sources to fill the revenue gap.
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