More revenue

Cochin or Kochi as it is currently known is on the verge of an explosion in the area of construction & development. With support and financial aid from various agencies, projects for road-traffic improvement, communications, potable water, and sewage treatment are being implemented on a war footing.
As the city anticipates to step-up its infrastructure, the biggest challenge faced by civic administrators is raising matching funds for the financial aid. As the real-estate sector is one of the fast growing areas in the city, it is natural that it is has been targeted as the sector for garnering more revenue.
Introduction of a development cess, assessment of building tax based on the plinth area and self-assessment of building tax by property owners are some of the ways by which Cochin Corporation hopes to raise the additional revenue. It is too early to predict how these reforms and schemes will have an impact on the common people or the industry. However, the 2007 budget marks the beginning of a new financial administration and management regime in the Corporation, as it is the first time that the civic administrators are planning development projects for which funds have been earmarked.
Cochin Corporation intends to collect the cess for development of marshy lands, which are being filled up to create water frontage for the plots. However, residential units below 3000 sq. ft area have been excluded from the levy of development cess.
The Corporation has announced the introduction of building tax assessment based on the plinth area in the city from April 1. Nevertheless, houses with area below 300 sq. ft will be exempted from the levy.
In additional to the above, the civic body has proposed to target residential apartments rented out for commercial uses. The buildings thus rented out will be taxed as applicable to commercial establishments. It also proposes to conduct tax assessment of buildings that has constructed additional floors on buildings, without permission, for commercial and residential use during the current fiscal.