Thiruvananthapuram: In a bid to boost revenue, the Kerala Budget 2025 has proposed a 50% increase in land tax rates across all slabs. The lowest slab, which currently stands at Rs 5 per are per annum, will be revised to Rs 7.5 per are, while the highest slab will see an increase from Rs 30 per are to Rs 45 per are per annum. The government expects this revision to generate an additional Rs 100 crore in revenue.

Revised tax rates by category:
Panchayat areas: Land up to 8.1 ares will be taxed at Rs 7.5 per are per annum, up from Rs 5 per are. For land above 8.1 ares, the tax rate will rise from Rs 8 per are to Rs 12 per are.

Municipal council areas: Land up to 2.43 ares will now be taxed at Rs 15 per are, compared to Rs 10 per are earlier. For land above 2.43 ares, the tax will increase from Rs 15 per are to Rs 22.5 per are.

Municipal corporation areas: Land up to 1.62 ares will now be taxed at Rs 30 per are per annum, up from Rs 20 per are. For land above 1.62 ares, the tax rate has been hiked from Rs 30 per are to Rs 45 per are.

The state government has justified the hike by pointing out that the existing basic tax on land is nominal and that the revision is necessary to strengthen revenue sources.