Real estate: Real estate developers in Rajasthan have urged the state government to offer better incentives to IT companies to lure them to state. IT is a key sector that drives demand for housing, they said. Real estate body Credai-Rajasthan drew comparison with states like Telangana and said incentives on stamp duty, land cost, conversion charges, power tariffs, VAT, and investment subsidy will be key in attracting IT companies to the state.
Credai-Rajasthan president Dhirendra Madan said, “We have already brought to the attention of the state government the importance of the IT sector. We hope the Budget to a package for the IT sector whose growth will lift the real estate sector.”
‘IT sector supports real estate’
Madan said that IT industry is people-driven and offers better salary perks. Growth of IT sector will not only generate jobs, it will also support the real estate sector that influences the fortunes of scores of industries in sectors like steel, cement, electrical, furniture, and several others.
“Like IT, real estate also a people-intensive industry. It employs large number of people from all walks of life. It is empirically evident that if real estate sector is doing well, the economy is fine fettle,” Madan said.
Reduction in stamp duty
He added that Credai has repeatedly appealed to the state government for reducing stamp duty. Stamp duty in Rajasthan is one of the highest in the country. It is about 8.8% in the state against 5-6% in many states.
“The rates are not high alone. There is an incidence of double taxation. Developers pay stamp duty and registration charges at the time of land purchase. Thereafter, at the time of sale of flats or houses, the buyer again pays stamp duty and registration charges. We hope the budget rationalises this double taxation,” added Madan.
Anothe niggling issue is Transfer Development Rights (TDR) policy. Absence of a clear TDR policy slows down project implementation and does not help in traffic situation. Madan said, “TDR policy will provide a great strength to the government in negotiating with the landowners, thus reducing huge financial burden for speedy acquisition of land to complete missing road links for major projects. It will also encourage the landowners to voluntarily come forward for surrendering the road widening portion on issuance of TDR certificate,” he added.
Developers also urged the government to reduce electricity charges for projects under construction. The rates are currently around 18% a unit.
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