Recently the Kerala Finance Minister K N Balagopal presented the Kerala Budget 2023 where by it was declared that the existing fair value of land would be increased by 20 per cent to bridge the gap between market value and fair value.
It going to be too costly in buyinga property in Kerala from fiscal 2024 as the fair price value of land has been hiked. The fair value of land came into force in the State in 2010. There this has been revised five times.
As per Finance Act, 2020,there were certain provisions to increase the fair value of land up to 30% in areas where the market value has increased due to various reasons; a detailed study will be conducted to determine the guidelines to identify the areas that need to be notified.
The FM said it is proposed to levy a Social Security Cess on Indian Made Foreign on the sale of petrol and diesel as the commitment to continue protecting the decent lives of vulnerable sections of society requires supplementing the financial resources.
The decision to impose a 20% increase in fair value may affect the real estate sector adversely and lead to recession. The fair value hike was meant for good governance,but unfortunately, it will adversely affect real estate and other related sector.
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