CREDAI urges Govt to remove bottlenecks for doing business

Builders have been bringing to the notice of the State Government several issues including those related to land conversion, zoning and vacant land tax.

They have been hanging fire for a long time now and several representations have been made in the past too. Simplify the existing building rules, giving some concessions and removing bottlenecks will improve the ease of doing business, says Confederation of Real Estate Developers’ Associations of India.

Recently, the issues have been represented to the Chief Secretary. Special Chief Secretary, Finance, Ajeya Kallam had held three meetings on the issues with representatives of Confederation of Real Estate Developers’ Associations of India.

CREDAI has represented that vacant land tax be levied along with the other fee for obtaining building plan approval and synchronised with issue of occupancy certificate and levy of property tax, says CREDAI Visakhapatnam chapter chairman K. Ramakrishna Rao.

“We have represented several times that VLT should be collected at the time of giving building plan approval. Once building approval is given for construction, it is no longer a vacant site. Until the construction is completed no tax should be levied,” he says.

For obtaining BPA, a builder pays a total of 12 fees. But for paying the VLT one has to go to the Revenue Department of GVMC and get it assessed and paid, he points out.

CREDAI is demanding that the 0.5 per cent VLT be included in the fees to be paid for BPA so that one need not make repeated trips to the Revenue wing again.

Mr. Ramakrishna Rao says once the construction of the building is completed, occupancy certificate (OC) is issued by the City Planning Department of the GVMC.

It means that the building has been constructed according to the plan approved. With so much of technology being used, the levy of property tax as per the plan specifications should be synchronised with the issue of OC effecting mutation of the property, he says.

This will again save the trouble of approaching GVMC for assessment of property tax and their taking measurements etc. It will also prevent loss of revenue to the government as property tax is levied soon after the issue of the OC, he points out.

NALA tax

Though residential areas have been identified in VUDA’s Master Plan, in the revenue records it is still recorded as agricultural land. For conversion NALA fee has to be paid at the abnormal rate of 9 per cent of the market value of the land.

Mr. Rama Krishna Rao points out that in Telangana it has been reduced to 3 per cent in rural areas and 2 per cent in urban areas. The Andhra Pradesh Government should follow suit, he demands.

Commercial zoning

Commercial zoning of rapidly developing areas like Madhurawada should be done by VUDA. But since it is not done, for each of the individual commercial property permission has to be obtained from the Department of Municipal Administration and Urban Development, Mr. Ramakrishna Rao says.

Instead of it, commercial zones should be demarcated in areas abutting roads of a width of 60 feet or more, he demands.

CREDAI is hopeful of a positive outcome on some of the issues in the next round of meeting with officials.

Credits The Hindu

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