APUCF demands withdrawal of Impact Fee on buildings

Vijayawada: Expressing concern over the latest order issued by the state government imposing Impact Fee on the buildings, Andhra Pradesh Urban Citizens Federation (APUCF) said here on Saturday that it would be another burden on people who are already reeling under many taxes and would be a set back to the construction sector.

APUCF state convener Ch Babu Rao recalled that the municipal administration department issued GO No 117 on August 1 imposing the Impact Fee which would adversely impact the citizens in 123 municipal bodies and nagar panchayats across the state. Moreover, all the towns and villages which fall under the jurisdiction of CRDA, VMRDA and 16 urban development authorities across the state would be affected. Nearly 75 per cent of villages fall under the jurisdiction of the urban development authorities, he pointed out.

Babu Rao said that all the new constructions which would come up on the roads with a breadth of 60ft would have to pay fee of two to three per cent of the land value or Rs 25 to 150 or Rs 269 to 1614 per square metre whichever is high for obtaining permission.

If the road breadth is 150 ft or more, the residential houses should also pay the impact fee. In essence, each building may have to pay Rs 1 lakh to Rs 3 lakh additionally for obtaining permission. Already, there are licence fee, development fee, betterment charge, additional development charge, drinking water and drainage connection charge, building material and debris charge, green fee for plantation and tree guards for their protection, soak pits, 14 per cent open space cost, compound wall fee, vacant land tax and scores of other charges up to several lakhs of rupees being collected.

However, the government is collecting one per cent of the cost of construction as labour cess which is not being spent for the welfare of labourers but filling its coffers. It is a gross injustice to add Impact Fee to the long list of charges. The cost of the construction material had already skyrocketed.

As per the GO, the Impact Fee burden will be not only on national and state highways but also all roads which are part of the Master Plan, he said. The Impact Fee is applicable to not only the buildings on the road side but also on the buildings which are on both sides up to 250 metre.

Babu Rao appealed to the civil society to fight tooth and nail against the unjust Impact Fee and get ready for an agitation.