THIRUVANANTHAPURAM: The budget proposal to increase the existing fair value of land by 20% may backfire, warn document writers and land consultants. The budget has proposed an increase in the fair value of land with the intention to increase revenue. This is the fifth time the fair value has been increased after it came into force in 2010.
According to the All Kerala Document Writers and Subscribers Union, the decision to impose a 20% increase in fair value may affect the real estate sector adversely and lead to recession.
“The government has to take steps to correct the unscientific system existing here,” the association said. “There are places where the fair value of land is higher than the market value,” said Anayara Jayan, president of the association. And at some places the fair value is not even one-twentieth of the market value, he said.
“In a Thrissur village the fair value of a two-and-a-half cent land is Rs 81.51 lakh,” S Vinodchith, a land consultant, told TNIE. “However, the market value is Rs 20 lakh for a cent. If a person decides to buy that land they have to pay Rs 8.15 lakh as stamp duty. Now with the proposed increase of 20%, the fair value of that particular land will be Rs 97.8 lakh. And the stamp duty will be Rs 9.78 lakh. But the market value of the land has not increased. How would someone buy that land? he asks.