The Hindu : Front Page : Building tax hike may be reduced

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Friday, Jul 10, 2009
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Building tax hike may be reduced

Special Correspondent

THIRUVANANTHAPURAM: Local Self-Government Minister Paloli Mohammed Kutty said in the Assembly on Thursday that the State government had directed the local self-governments to reduce the increase in building tax.

Replying to a debate on the demands for grants for Urban Development, Panchayat and Community Development, the Minister said some panchayats had increased the rates by as much as 10 per cent in an unscientific manner. The government had suggested an increase of three per cent to improve the revenues of the local self-governments. Arrangements would be made to look into complaints about excessive assessment of tax.

Mr. Mohammed Kutty said that the assistance to the poor for construction of houses would be increased by Rs.25,000. Accordingly, the grant to Scheduled Tribes would go up from Rs.1 lakh to Rs.1.25 lakh and Scheduled Castes from Rs.75,000 to Rs.1 lakh. The assistance for others would be increased from Rs.50,000 to Rs.75,000. The funds given for purchase of land for housing schemes for the poor would be increased. The State wanted to provide houses to all the poor by 2011.

He announced that the government would set up a financial agency for the local bodies to get loans for implementation of Centrally sponsored schemes. Later, the House passed the demands totalling Rs.835 crore.

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