Govt. Likely to Impose 2 Percent Tax on Vacant Urban Land

March 20, 2007	(1 votes, average: 1 out of 5)  Loading ...
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The government is working on a policy that seeks to impose 2 percent tax on unused urban land and is likely to be announced by next week, said a highly placed source at Nirman Bhawan.

Once the vacant land tax will be announced, the tax factor will be calculated on the value of land registered with the development authority of respective areas.

The source said that it has been noticed that real estate builders use land to speculate the rates. They would buy land from the development authority and would leave the land vacant till they see a quantum jump in the land rates.

But, with this policy in place, such speculation activities will attract tax, the source added.

The government is adopting the guidelines that are followed in various European nations as well as in US for this vacant land tax.

Such tax policy is already being practiced in Andhra Pradesh where it has been successful in checking the practice of land rates speculation by builders.

Apart from the 2 percent tax, which will be imposed on the erring builders, there is another rule, that will make it compulsory for the builder to complete the construction within a stipulated time, and if he fails, he will attract some fines.

The funds raised through these fines will be used for development of sanitation, healthcare facilities, low-cost houses, drinking water and solid waste management.

News Published Under:   Real Estate India |

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