Kerala Budget 2019 has been presented by the Finance minister on January 31st. Like any other industry, the construction and real estate business relies on the upcoming changes in the economy of our state.
Based on the close evaluation of the budget we can say that some of the tax standard rates have been hiked. Also the cement and other raw materials like plywood, ceramic tiles and granite price is increasing day by day which can cause the construction industry very badly.
In the 2019 Budget, there is a major change in the taxation of the luxury residential area. Previously, all residential construction greater than 3000 Sqft has imposed a tax amount of Rs.4000. This taxation has its own fault as everyone can see that whether it is 3100 Sqft or 5000 Sqft, all are required to pay the same amount. This has been now changed and the state government has imposed different slabs based on the square feet area.
Those are listed below:
|Square feet Area||New taxation|
|3000 – 5000 Sqft||Rs.4000|
|5100 – 7500 Sqft||Rs.6000|
|7600 – 10000 Sqft||Rs.8000|
Primarily the Kerala Budget 2019 has been focused on Nava Kerala Nirmithi but ironically hiking the price of basic raw materials like cement would largely impact this project as well as the other construction projects.