The proposed tax on vacant house saw a protest from the non-resident community forcing the Kerala government to withdraw its proposal to impose an additional tax on vacant houses and people having more than one house
In its 2023-24 Kerala budget, the state had said that it would revise the tax rates on properties and also levy additional tax on its large number of vacant houses. The proposed tax on vacant houses had invited widespread criticism, especially from non-residents, reported Hindustan Times. The proposed tax saw a protest from the non-resident community forcing the Kerala government to withdraw its proposal to impose an additional tax on vacant houses and people having more than one house.
The state finance minister K N Balagopal said in reply to a question during the budget discussion, that it was only a proposal and the government had no plans to go ahead with it.
In its 2023-24 state budget, the state had said that it would revise the tax rates on properties and also levy additional tax on its huge number of vacant houses. The proposed tax on vacant houses had invited widespread criticism, especially from the Non-Resident Indians (NRIs). “We understand reservations expressed by the expatriate community. We also received many petitions in this regard,” Balagopal said.
According to the local self-government department, at least 11% of over 10 million houses in the state are vacant, which is much higher than the national average of 7.45%. As per the latest data from the local self-government department, there are 18 lakh vacant houses across Kerala
The minister also denied reports that the decision was taken under the pressure of the real estate lobby. “It is not true. Many NRIs shared their concern with me. It will affect expatriates in lower income groups, they told me. So we decided not to go ahead with it,” he said while replying to a question from Congress member Thiruvanchur Radhakrishnan.
Many NRIs have welcomed the government’s decision. “We are relieved. We are happy the government realised our concern,” said K V Sajith, settled in Bahrain. “The government cannot kill the goose that lays golden eggs. Happy, the government finally understood its folly,” NRI Kurian Abraham was quoted saying.
According to the local self-government department, at least 11% of over 10 million houses in the state are vacant, which is much higher than the national average of 7.45%. As per the latest data from the local self-government department, there are 18 lakh vacant houses across Kerala.
People who supported the move said it was necessary to check the fragile environment and people who consider big houses as their status symbols should be penalised. They said these closed “ghost houses” were turning into a burden and they have to pay up.
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