Bullish realtors in AP feel NALA tax cut
Will reduction in the Non-Agriculture Land Act (NALA) tax from 9 percent to 3 percent lead to a boom in the realty sector? Realtors, who are bullish, say that besides the real estate sector, it will also have a positive impact on industry. Though the demand for reduction of NALA tax has been made for a long time by the realtors as well as those from the industry, the government finally came out with the Bill reducing the NALA tax and also simplified the process for conversion of agricultural land into a non-agricultural one.
While the NALA tax, which was at 5 percent under the jurisdiction of Vijayawada Municipal Corporation and Greater Visakhapatnam Municipal Corporation will be reduced to 2 percent, in other areas, it will be cut to 3 percent from the existing 9 percent.Observing that the reduction of NALA tax will definitely help the real estate sector, realtors, however, say that since there are many layouts which were converted from agricultural land to non-agricultural land and remain vacant due to demonetisation and goods and services tax (GST), the cut in NALA tax may not have any beneficial effect in the immediate future. But the realty sector will definitely benefit after some time, they observed.
Confederation of Real Estate Developers Association of India (CREDAI) state general secretary Ch Sudhakar asserted that reduction of NALA tax will come in handy for the real estate business. Though construction activity has slowed down now, it will pick up momentum soon, he added.
Observing that the reduction in NALA tax will definitely help the realty sector sooner or later, Andhra Pradesh Real Estate Development Association (APREDA) G Tirupati Rao said that the industry sector will be the ultimate beneficiary of the development.Moreover, as the process for conversion of land has ben simplified by the State government, the NALA Bill will also give a boost to other sectors, he averred.
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n 5 percent NALA tax earlier under the jurisdiction of Vijayawada Municipal Corporation and Greater Visakhapatnam Municipal Corporation
n 2 percent NALA tax now under the jurisdiction of Vijayawada Municipal Corporation and Greater Visakhapatnam Municipal Corporation
n 9 percent NALA tax in other areas earliern 3 percent NALA tax in other areas now
n Construction activity has slowed down now due to the effect of demonetisation as well as GST
n Govt also simplified the process for conversion of agricultural land into non-agricultural