Tripura Government drastically increased various taxes and fees relating to land registration, land-use diversion

By Our Correspondent

Agartala, June 16, 2025

In a major fiscal shift that has sparked anxiety among property owners, landholders, and business communities, the Tripura Government has drastically increasing various taxes and fees relating stamp duty to land registration, land-use diversion, and property transactions, one after another with rates rising between 100% and 200% in many categories. In certain sectors, new charges have been introduced for the first time, triggering strong reactions from citizens and stakeholders.

The most significant policy change came through a notification issued by the Revenue Department on June 2, 2025, which mandates that any land converted from agricultural use to non-agricultural purposes, such as industrial, commercial, or housing projects will now attract diversion charges amounting to 20% to 25% of the land’s market value. This is a steep increase compared to previous rates, and in some cases, a completely new charge where such diversion taxes were not previously levied.

These changes are being enforced under the Tripura Land Revenue and Land Reforms Act, 1960, specifically invoking Section 20 (regulating land-use change) and Section 98 (empowering the state to frame rules and levy fees).

Apart from diversion charges, earlier the government has also revised land registration fees, mutation fees, stamp duty and property tax slabs, with increases ranging between 100% and 200%. Legal experts note that registration fees that previously stood at Rs. 10 per square meter in certain zones have now increased to Rs. 25–Rs. 30 per square meter. The land registration expenses is almost 6.5% of the land values or the market rates. This is the first major overhaul of the land and property taxation system in over a decade, and it arrives without any public consultation or stakeholder meetings.

The June hike is a follow-up to the Tripura Jan Vishwas (Amendment of Provisions) Ordinance, 2025, issued in May. Through this ordinance, the government has repealed and amended several long-standing state laws, including: Tripura Land Tax Act, 1978, Tripura Markets Act, 1979, Tripura Fire Service Act, 1990, Tripura Shops & Establishments Act, 1970. This ordinance also introduces a clause for automatic increase in penalties and fines by 10% every three years, further tightening financial norms around land and industrial operations.

The sweeping changes have elicited strong reactions from civil society and experts.

While the government defends the hikes as a "necessary step to improve revenue generation and urban planning", critics argue that these decisions could: Disincentivize investment in real estate and industry. And this decision will be increases the burden on farmers and small landowners.

Leading members of the real estate sector have also expressed concern that the new diversion fees could result in artificial inflation of property rates, making land unaffordable in both urban and semi-urban areas. The opposition political parties not yet reacted upon this government decision. But the public policy analysts have urged the state to reconsider or rationalize the increase, suggesting a graded fee structure based on land values or land size and Exemptions or subsidies for low-income households and rural projects.

more news...