The Kerala government on Wednesday decided to reduce the building permit fees up to 60 per cent in the state.

The new rate would reduce the permit fee by at least 50 per cent for houses with an area from 81 square metres to 300 square metres, Local Self-Government Minister MB Rajesh said here on Wednesday.

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Earlier, buildings up to 80 square meters were exempted from this fee.

In Gram Panchayats, the permit fee for houses between 81 and 150 square meters will be reduced from Rs 50 to Rs 25 per square meter. In municipalities, the cost will decrease from Rs 70 to Rs 35, and in corporations, it will drop from Rs 100 to Rs 40.

For houses between 151 and 300 square meters, the fee will be reduced from Rs 100 to Rs 50 per square meter in panchayats, from Rs 120 to Rs 60 per square meter in municipalities, and from Rs 150 to Rs 70 per square meter in corporations.

For houses over 300 square meters, the rates will be reduced from Rs 150 to Rs 100 in panchayats, and from Rs 200 to Rs 150 in both municipalities and corporations. Additionally, rates for industrial and commercial buildings have been reduced by up to 58 per cent.

Before April 1, 2023, there were only two categories: residential and others. A single rate is applied to all sizes.

However, from April 1, 2023, buildings were classified into three slabs based on size, with different rates applied. Buildings are now categorized into four types – residential, industrial, commercial, and others and different rates will apply in panchayats, municipalities, and corporations.

The new rates would come into effect on August 1.