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The Thiruvananthapuram civic body has registered nearly a 100 percent rise in fee collection in 2022–2023, thereby successfully stopping the decline in permit fee returns for two consecutive fiscal years. According to the most recent numbers in the budget sheet for 2023–24, the permit fee collection in 2022–23 totalled Rs 14 crore, an increase of 101 percent from 2021–22. The low profits in 2020-2021 and 2021-22 were mostly due to the pandemic, which brought the city's building sector to a halt.
The collection of permit fees had dropped from Rs 22.43 crore in 2019-20 to Rs 10.34 crore in 2020-21. This further dropped to Rs 6.95 crore in 2021-22. While the Corporation takes some solace in increasing the permit fee revenue, the figures reflect other concerns.
In 2022-23, the budget projected a revenue of Rs 20 crore from permit fees, but the revised budget estimate was at Rs 14 crore. The corporation's ability to collect permit fees at a 100 percent increase suggests a significant resurgence in the building sector. This is expected to be increased by the state government's extraordinarily high amended permit fee, application fee and scrutiny fee. With the revised prices in place, the Corporation anticipates the total revenue to go even higher.
The constant increase in registrations with Kerala's Real Estate Regulatory Authority (RERA), particularly in the urban sector, also signals a construction sector comeback. As additional real estate projects are slated to be launched and await RERA approval, the Corporation anticipates a significant increase in revenue from high-rise building permit fees for occupancy and those for occupancy and commercial use. According to a report on building statistics provided by the department of economy and statistics, despite the problems posed by Covid-19, house construction in the district's urban area increased.
The Kerala government has announced an exponential increase in the permit fees for building houses. People are sceptical as they are already struggling with price hikes of construction materials and fuel, making it even more cumbersome to construct a new house in the state. However, officials have assured them that the new fees will be implemented after amending the Panchayat and Municipality building rules and notifying the rates. State corporations and municipalities have begun issuing permits for low-risk category constructions with an area of up to 300 square metres on the same day that applications are submitted.
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