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Kochi Corporation is contemplating reclassifying property tax categories based on road width. The existing system, in place since 1995, categorizes properties as primary, secondary, or tertiary. Primary properties have access to roads over five metres wide, secondary properties to narrower roads, and tertiary properties to pathways or no access. The re-evaluation is prompted by the city's development and aims to increase revenue. Kochi Corporation seeks to generate more income through tax avenues and collect funds owed by the state government. The move is essential as the corporation currently relies on central and state government funds for projects.
In a bid to bolster its revenue streams, the Kochi Corporation is contemplating a proposal aimed at redefining the primary, secondary, and tertiary zones within the city. The basis for this re-evaluation lies in the determination of property tax rates, a system established in 1995 that chiefly hinges on the width of the roads accessible to a given property. Curiously, these classifications have remained unchanged for nearly three decades. Here's the breakdown: Buildings with access to roads wider than five metres fall into the primary category, while those with access to roads narrower than five metres find themselves in the secondary category. Finally, structures with access limited to pathways, alleys, or no access at all are classified under the tertiary category.
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According to the authorities at the corporation, the time is ripe for revising these categories. The cityscape has witnessed substantial development over the years, featuring the construction of new roads in all of its 74 divisions. In addition, several once-narrow alleys have been expanded to accommodate broader roads. To adequately address these changes, Mayor M. Anilkumar highlighted that we will initiate a comprehensive study, and its findings will serve as the basis for potential category revisions.
The Kochi Corporation has predominantly relied on funding from central and state government sources to execute its projects. Regrettably, its autonomous monthly fund generation has struggled to reach even Rs 9 crore, an amount that coincidentally aligns with the monthly salary expenses. For the 2022–23 fiscal year, the corporation had initially projected a total revenue of Rs 1,116 crore. However, the actual revenue fell significantly short, amounting to a mere Rs 600 crore. Meanwhile, the budget had allocated an estimated expenditure of Rs 1,075 crore, while the actual spending amounted to approximately Rs 440 crore.
While the budget often promised measures to enhance revenue collection, little to no concrete action has been taken in that direction. M. G. Aristotle, Secretary of the UDF Parliamentary Party at Kochi Corporation, stressed the importance of tapping into various tax avenues for generating income. He also called for effective tax collection measures and the recovery of funds owed by the state government, especially in areas that have experienced substantial growth but are still relegated to the lowest tax slab within the tertiary category.
In conclusion, Kochi Corporation's proposal to reclassify property tax categories based on road width access is a necessary step to adapt to the city's evolving landscape and enhance revenue. This move aligns with the need to generate more income independently and secure funds owed by the state government. By revising these categories, the corporation aims to ensure a fair and sustainable tax system that reflects the changing urban environment and supports its financial stability for future development projects.
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