Emphasis sought on self-regulatory mechanisms
HYDERABAD: The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has suggested that the State Government repeal the Urban Land (Ceiling & Regulation) Act, 1976 and Rent Control Act to pave the way for an attractive Andhra Pradesh that would compete with other States in the region.
This was announced on Tuesday by ASSOCHAM president Anil K. Agarwal at a press conference on the sidelines of a national conference on "Real Estate Development in AP - Issues and Opportunities" organised jointly with Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).
High stamp duty
He said it was unfortunate that people in India were still paying a stamp duty far in excess of what people in other countries were paying. It was only because the Government levied stamp duty of 8% that people preferred having a General Power of Attorney instead of going in for registration, he said.
Suggesting the imperative need for reducing stamp duty to at least 4%, Mr. Agarwal said the Government also needed collect duty only on the incremental value in second and subsequent sales instead of the same percentage as duty on the entire value of the deal.
The ASSOCHAM president referred to economic advantages experienced by States that had implemented VAT (value added tax) system and said in the South, Andhra Pradesh was making strides on this front.
Recalling that when ASSOCHAM had first mooted the idea of VAT, they had held a meeting in Chennai, he said while the earlier Government had disregarded the issue, the present Government too was not showing enough interest in implementing VAT.