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Kerala Budget 2021 Pushes for Eco-Friendly Building Constructions With Several Tax Sops

Kerala Finance Minister TM Thomas Isaac presents the budget. (ANI photo)

Kerala Finance Minister TM Thomas Isaac presents the budget. (ANI photo)

Incentives for eco-friendly buildings include a 50 percent reduction in one-time building tax.

Thiruvananthapuram: During the Kerala Budget 2021 on Friday, a policy was  proposed for encouraging eco-friendly construction of buildings, where incentives will be provided for buildings adhering to certain standards.

The standards will be devised for avoiding power wastage, water conservation and for adopting eco-friendly construction methods.

The incentives for eco-friendly buildings include a 50 percent reduction in one-time building tax, 1 percent reduction on stamp duty during transaction, 10 percent reduction in electricity tariff for 5 years if 20 percent power savings is achieved, and a 20 percent reduction in local building tax.

Also read: Kerala's Ambitious K-FON Project to be Completed by July, Says State FinMin; to Give Free Internet to BPL Families

As part of the e-vehicle policy the Kerala Financial Corporation will provide loans at 7 percent

interest for the purchase of electric cars with vehicles as collateral. Loans will be provided at 10 percent interest for converting diesel buses to LNG / CNG.

Finance minister Thomas Issac said, “Kerala is the first State in the country to formulate an e-vehicle policy and has brought solar and electric ferries into use. Currently, 2000 e-vehicles

have been registered in Kerala. In order to encourage the use of e-vehicles, full hybrid battery electric vehicles, fuel cell electric vehicles etc, these will be given 50 percent reduction in Motor Vehicle tax for the first five years."

Kerala Automobiles Ltd has started production and export of e-auto rickshaws. A subsidy of Rs.25000 – Rs. 30000 will be granted to 10000 e-auto rickshaws.

The budget stated that 3,000 KSRTC diesel engines will be converted to LNG / CNG

engines.

The Kerala State Electricity Board will also install 236 charging stations in 2021-22.

first published:January 15, 2021, 15:25 IST
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