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THIRUVANANTHAPURAM CIVIC BODY RECORDS 100% INCREASE IN COLLECTION OF PERMIT FEE

The permit fee collection in 2022-23 stood at Rs 14 crore, marking 101% increase
from 2021-22, pointed to the latest figures in the budget document for 2023-24.

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 * Aswin J Kumar ,
 * TNN

 * Updated On Apr 9, 2023 at 01:23 PM IST
   


THIRUVANANTHAPURAM: The civic body has managed to check the slump in returns
from permit fee for two consecutive fiscals, and recorded over a 100% increase
in fee collection in 2022-23. The permit fee collection in 2022-23 stood at Rs
14 crore, marking 101% increase from 2021-22, pointed to the latest figures in
the budget document for 2023-24.

The low returns in 2020-21 and 2021-22 were largely owing to the pandemic when
the construction sector in the city had come to a complete halt. In 2020-21, the
permit fee collection had slid from Rs 22.43 crore (2019-20) to Rs 10.34 crore.
The 2021-22 was even worse as it dropped to Rs 6.95 crore.


Advt


Even while the corporation finds mild relief in upping the revenue from permit
fees, the figures also reflect other concerns. The budget had estimated revenue
of Rs 20 crore from permit fee in 2022-23; however the revised budget estimates
put the figure at Rs 14 crore.

For the third consecutive fiscal, the corporation fell way short of achieving
the targets estimated for respective fiscals from permit fee. The officials said
the fact that the corporation could achieve a 100% increase in permit fee
collection indicates a major revival in the construction sector.

This is set to be further enhanced by the extremely high revised rates of permit
fee, application fee and scrutiny fee published by the state government. With
the revised rates coming into effect from April 10, the corporation expects the
total revenue from permit fee to go even higher.



Strangely, the budget estimates for 2023-24 from the permit fee have been fixed
at Rs 22 crore. This was rather unexpected since even when the rates were lower
than the upcoming rates, the corporation had fixed estimates at Rs 25 crore.

The steady rise of registrations in Kerala real estate regulatory authority
(RERA) mostly in the urban sector also reflects a revival of the construction
sector.

As more real estate projects are set to be launched and awaiting RERA approval,
the corporation expects a huge increase in revenue from permit fees of high rise
buildings for occupancy and those for occupancy/commercial purpose.

A report on building statistics published by the department of economics and
statistics shows that in spite of the challenges posed by Covid-19, the
construction of houses in the district’s urban sector rose from 12,032 to
12,770.


   
 * By Aswin J Kumar ,
 * TNN

   
 * Published On Apr 9, 2023 at 01:21 PM IST
   




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