MUMBAI, May 16: The Confederation of Real Estate Developers’ Associations of India (CREDAI) has said the Local Body Tax (LBT) will result in rise in corruption and be detrimental to business as
well as consumers.
Mr Lalit Kumar Jain, CREDAI Chairman, has said the government should instead raise VAT to compensate for octroi.
Creation of an additional machinery for LBT collection will only
increase burden on the government and it could be avoided through just raising VAT.
He expressed the apprehension that the new machinery and the new
system of search operations that come with LBT will lead opening up
another window for corruption.
He also vehemently opposed the flat one per cent LBT on real estate and over and above LBT on all building material.
This will only lead to increased burden on end buyers who are forced to cough up heavy amounts for a series of taxes, Mr Jain added in a statement.
(UNI)
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