Telangana government is in discussions to enhance the land value of non-agriculture lands between 30% to 50%.
Due to pandemic lockdown, the revenue of the government has decreased. It hurt the government exchequer.
After GST and Excise, revenue is earned by the government through property registrations.
If CM K. Chandrashekar Rao okays the proposal, the land market value may be enhanced.
If the proposal comes into force the government may achieve 12,500 Crore this financial year (2020-21).
The land market value may be enhanced for non-agriculture land up to 30% to 50%. While 30% enhancement may be in rural areas, while 50% will be in Hyderabad and other municipal corporations.
For agriculture properties, the hike in the value would be about 20% on the existing rates.
The government has powers to revise market value every year under the Indian Stamps Act, land values have not been revised after the formation of Telangana. The last revision was done in August 2013. When the state was united.
Though there was a proposal for revision earlier due to covid-19 first wave and lockdown it was postponed.
In the last financial year 2020-21, the government had a target of Rs, 8000 crore collections to the registration department but it had earned Rs 5260 crore through 12.11 lakh documents registrations, which was d1800 crore less than the 2019-20 revenue. The property registration had been stopped for three months as the government decided to have agricultural properties registered through sub-registrar offices in September last year.
If the proposal to hike land value the buyers will have to pay more money for registration in the coming days. However, buyers will have an advantage too. If the value of the properties is increased they could get more loans from the bank based on the increased property values.