Vacant land is likely to be taxed, Govt to fund infra projects.Posted on : 10 Apr, 2012
The government is concentrating on a ‘vacant land tax’ to check large scale hoarding of land and generate revenuesto facilitate suffering infrastructure sector in several cities.
The Planning Commission suggested the new tax system will be based on “ready reckoner capital value” and be charged at 0.5% of the total value of the land. According to the proposal the group has suggested that government vacant land also have to be taxed. Several developers are using vacant land for tentative purposes, sources said. According to the senior official of the urban development ministry, the developers are buying land and keeping it vacant for long time till the prices are rising. The official further said that, funds through this tax system will generate the more revenue and would help to the municipal authorities to fund crumbling infrastructure.
SOURCE: Accommodation Times Bureau