C Shivakumar @ CHENNAI:
In a bid to strengthen Tamil Nadu's non-tax revenues, the state government is looking at revising the development charges, open space reservation area charges and centage charges.
A high level meeting is scheduled this week where in new rates could be announced.
This could boost the state coffers where in additional revenue earned could be more than Rs 100 crore per annum. This comes as Tamil Nadu has estimated to generate Rs 13,327 crore (7% of the revenue receipts) through non-tax sources in 2019-20.
Non-tax sources include interest receipts, dividends, and royalties, among others. It is learnt that this is a decrease of 9.3 per cent over the 2018-19 revised estimate. In 2018-19, non-tax revenue is estimated to increase by Rs 3,399 crore at the revised stage, a 30.1 per cent increase over the budgeted estimates.
Official sourcessaid that since the last 13 years, the Open space Reservation (OSR) area charges, development charges, Centage charges for plots and partition of land charges has not been revised.
The idea is to strengthen the non-tax revenue base and augment resources. According to information available, currently the centage charge which is Rs 300 per plot is likely to be increased to Rs 1,000.
Similarly, the charges for partition of land, which is now being charged Rs 6,500 per application may be increased to Rs 10,000 per application. This could increase the additional revenue per annum for government to Rs 5.50 crore per annum.
The OSR area charges for lesser than 2,500 square metres per site, where in the charges are nil, and for the site which is greater than 2,500 square metres site, where in the charges is 10 per cent of the land value is likely to be evaluated on two times the Guideline value of the land. This is likely to enhance the state coffers by Rs 15 crore to Rs 20 crore per month.
Meanwhile, the development charges where in the maximum was Rs 25 per square metre and Rs 50 per square metre for land and building respectively is likely to be increased. As per the proposal, the minimum charges for land is fixed at Rs 50 per square metre and maximum as Rs 250 per square metre.Similarly for building, the minimum is Rs 100 per square metre and maximum is Rs 500 per square metre.
Ajit Chordia, former president of Confederation of Real Estate Development Authority of India and managing director of Olympia Group told Express that any move to increase non-tax revenues by increasing development charges would be a retrograde step. “When the real estate is looking for stimuli, the move would be anti-stimuli and would have impact on real estate sector, said Chordia.
In a bid to strengthen Tamil Nadu's non-tax revenues, the state government is looking at revising the development charges, open space reservation area charges and centage charges.
A high level meeting is scheduled this week where in new rates could be announced.
This could boost the state coffers where in additional revenue earned could be more than Rs 100 crore per annum. This comes as Tamil Nadu has estimated to generate Rs 13,327 crore (7% of the revenue receipts) through non-tax sources in 2019-20.
Non-tax sources include interest receipts, dividends, and royalties, among others. It is learnt that this is a decrease of 9.3 per cent over the 2018-19 revised estimate. In 2018-19, non-tax revenue is estimated to increase by Rs 3,399 crore at the revised stage, a 30.1 per cent increase over the budgeted estimates.
Official sourcessaid that since the last 13 years, the Open space Reservation (OSR) area charges, development charges, Centage charges for plots and partition of land charges has not been revised.
The idea is to strengthen the non-tax revenue base and augment resources. According to information available, currently the centage charge which is Rs 300 per plot is likely to be increased to Rs 1,000.
Similarly, the charges for partition of land, which is now being charged Rs 6,500 per application may be increased to Rs 10,000 per application. This could increase the additional revenue per annum for government to Rs 5.50 crore per annum.
The OSR area charges for lesser than 2,500 square metres per site, where in the charges are nil, and for the site which is greater than 2,500 square metres site, where in the charges is 10 per cent of the land value is likely to be evaluated on two times the Guideline value of the land. This is likely to enhance the state coffers by Rs 15 crore to Rs 20 crore per month.
Meanwhile, the development charges where in the maximum was Rs 25 per square metre and Rs 50 per square metre for land and building respectively is likely to be increased. As per the proposal, the minimum charges for land is fixed at Rs 50 per square metre and maximum as Rs 250 per square metre.Similarly for building, the minimum is Rs 100 per square metre and maximum is Rs 500 per square metre.
Ajit Chordia, former president of Confederation of Real Estate Development Authority of India and managing director of Olympia Group told Express that any move to increase non-tax revenues by increasing development charges would be a retrograde step. “When the real estate is looking for stimuli, the move would be anti-stimuli and would have impact on real estate sector, said Chordia.
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