The Karnataka Government will convene a meeting of real estate developers in 15 days to discuss issues related to taxes and approvals.
Karnataka Chief Minister Jagadish Shettar announced this at the state conference of CREDAI in Mangalore on Saturday. This followed requests from CREDAI in this regard.
CREDAI members said that house buyers in Karnataka are paying nearly 42 per cent as tax.
Delivering the keynote address, A. Balakrishna Hegde, member of national executive committee of CREDAI, said that real estate developers are burdened by multiple taxes such as VAT, stamp duty and service tax.
The tax structure should be simplified, he said.
Sushil Mantri, President of CREDAI Karnataka, said that nearly half of the 42 per cent tax is contributed by taxes in Karnataka.
Added to this, delays in giving approvals increase the cost. In such a situation, there is a need for the establishment of a single window clearance agency in the state.
Hegde said that a developer has to get nearly 170 approvals from around 40 departments. All these aspects need a relook, and unnecessary delays need to be eliminated.
Mantri said that in places like Bangalore a delay of two years leads to around 60-70 per cent escalation in the cost of the project.
Asking the CREDAI to focus on affordable housing for people, Shettar said he will convene a meeting to discuss their problems related to taxes and approval process.
This will be done within the framework of parameters taking into consideration feasibility of such initiatives, he said.
Suresh Kumar, Karnaraka Urban Development Minister, also spoke.