VCCI urges govt. to not revise land rates in view of pandemic

The Vizagapatam Chamber of Commerce and Industry (VCCI) has appealed to Chief Minister Y.S. Jagan Mohan Reddy not to go for an upward revision of land rates in view of the economic slowdown caused by the COVID-19 pandemic.

Referring to the proposal of the government for an upward revision of the value of land in the State and calling for objections, if any, VCCI president Veera Mohan and honorary secretary Ravi Godey told reporters here on Wednesday that the present government value of lands in Visakhapatnam was very high and at par with market value. In some areas, the government value was much higher than the prevailing market value, they said.

“Housing is one of the basic needs of citizens. Land cost is a major component in the housing sector. The increase of land rate in government records would lead to an increase in the prices of house sites, houses, flats and agriculture lands. Any increase in rates by the government will finally reflect in the end costs on the common man,” Mr. Veera Mohan said.

“The proposed increase will deter potential buyers, especially the middle and lower-middle class people, from buying a plot or flat. The decrease in purchasing power will have a cascading effect and adversely affect the real estate and construction sector. It will ultimately have an impact on the revenue of the government,” Mr. Ravi said.

Andhra Pradesh is one of the few States in India that has been upwardly revising land rates every year from 2015 to 2019. In these five years, government land rates have doubled.

The VCCI representatives appealed to Mr. Jagan not to tax the people in these difficult times.

They noted that in neighbouring Telangana, the land rates were fixed in 2013 and Karnataka has announced that there would not be any increase till 2021, and was also initiating measures to reduce the values by 5% to 10%. Tamil Nadu was offering stamp duty exemption on apartments and had reduced guidance value by 33% in 2017.

The VCCI reiterated its appeal not to increase land rates at least for this year.

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Printable version | Sep 24, 2020 2:22:50 AM |

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