Around 51% of the total, own collected revenue of Grama Panchayats is the non tax revenue. In case of municipalities it is 42.62% and for corporations it constitutes 24.39%.
Licence fee is the most important source of non-tax revenue. Licence fees collected by the local government include the following main items.
In Grama Panchayats, licencing of trades is done under Kerala Panchayat Raj.
- Licences under Prevention of Food Adulteration Act- The local government can issue licence and collect fees for issuing them.
- Licences under Kerala Cinema Regulation Act- This rule govern the construction of theatres and installation of machinery.
- Licensing of Private Slaughter House- The rent and the fee for killing animals at slaughter houses has been fixed in Grama Panchayats.
- Licensing of Private Markets- In order to open a private market a licence fee has to be paid and it is fixed depending upon the floor area of the market. There will a renewal fee which is not more than one-third of the previous years licence.
- Licences under the Kerala Places of Public Resort Act- The rate for licence for the public resort is fixed. It is based on the area, type of building etc.
- Licensing of Private Parking and Halting Places- The licence fee for public halting of carts, auto rickshaws, motor vehicles and other vehicles are fixed.
An entry fee can be obtained from places such as public market, public parking places, public slaughter homes etc. These are obtained from the highest bidder who can decide the entry based on certain fees.
Income from Property – Rent
Rent is an important source of non-tax revenue. They have been classified based on the type of property which includes rent from buildings, lands, cloak rooms and comfort stations.
Income from property other than rent
Income from property can also be obtained other than the rent which can be classified as
Proceeds from sale of right to collect river sand.
Proceeds from sale of right to fish.
Proceeds from sale of structs.
Permit fees are of two kinds namely fee for building permits and fee for permits for the construction of factories or any workplace where electricity is used.
Registration fees for various registrations such as registration of Hospital and Para Medical Institutions, Tutorials, Births and Deaths, Contractors, lodgings are levied by the government.
Service charge has to be paid to the government for using utilities and amenities that are provided by the local governments.
Fines and Penalties
If there is a violation of regulation or delay made in any payments then the local governments can impose fines and penalties.