Bengaluru: Remember the state government's plans to increase the land guidance value in the city from anywhere between 10 to 30% by the first week of October? If sources in the state government are to be believed, this revision exercise has been put off indefinitely, following the stiff resistance from various stake holders including the general public.
According to these sources, as per plans, state government had issued a notification in this regard in the first week of September 2015 and invited objections from the stake holders and general public over the proposed revision.
As per the draft notification, the government wanted to increase the guidance value by 10 to 30% across the city, on par with the prevailing market rate.
But now these sources say, the state government has dropped the proposal. "In 2014, revision was done in the month of November. This year also it was expected that a new guidance policy could have come into effect from October 2015. But following the fear that this exercise may result in public outrage against the state government and lead to a drastic drop in the land, house and apartment registrations, now the state government has put off the whole exercise. Revision may be done by March 2016," informed an officer familiar with the development.
According to Mr.Suresh Hari, Secretary, CREDAI Bengaluru, CREDAI had objected to the increase of guidance rate at any point of time and have always opined that it should be done more systematically.
"The guidance rate should be indicative of market value as required for various tax purposes. Using this as a tool to levy stamp duty and other charges is not the best option. For, any tax or levy should be in line with the service received. To achieve 'housing for all' as envisaged by our planners, all those concerned, including the Government, should work at making taxation simpler. The Housing market is picking up and with the festive season, the market looks for more concessions from the Government," he said.
According to Mr.Manoj Singh, MD, Birla Homes, this is good news for property seekers in Bengaluru.
“As Stamp and Registration charges are directly proportionate to the guidance value, the decision not to increase the guidance value up to 30% is a saving for the prospective buyers. I believe it is the right opportunity for the property seekers to invest in a property which is going to get a higher guidance value in future.”
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