Annual Mixed Land Use Charges May Push Property Prices

July 30, 2007	(1 votes, average: 4 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

THE Government’s decision to raise land use conversion charges may push property prices further. It is done to generate additional resources from land to fund construction of houses for poor.

The current conversion rates are not enough to represent the fair market value. States would follow the Delhi’s model of levying development charge on mixed land use. This will enable the authorities to carry out their mission of providing housing facilities to poor.

Although, using land for the commercial purpose is not wrong but the conversion rates should be based on existing market rates, says a senior official.

Delhi has recently released an annual development charge for running shops from residential complexes. According to the Urban Development Ministry, such a tax will serve two basic purposes.

Apart from helping businessmen to operate from the convenience of their homes, it would also serve as an addition source of income for the government. Mixed Land use is allowed all over the world, provided the government gets its tax.

The Capital has fixed the mixed land use charges annually based on the different zones.

News Published Under:   Real Estate India |

Comments