Gujarat to charge royalty for building material from end-users

Ahmedabad, Feb 3 (PTI) The Gujarat Government todayannounced that royalty on minor minerals used as buildingmaterials would be charged from the end-users, instead ofquarry lease holders.

"The Government has passed a resolution to chargeroyalty on minor minerals used as building materials from theend-users, instead of lease holders, with effect from April1," Minister of State for Mines and Minerals Saurabh Patelsaid.

"The decision has been taken to bring transparency andsimplification in the process. Gujarat thus became the firststate in the country to effect such a change."

However, real estate developers feel the move wouldadversely affect the housing schemes, especially those for thelower income group (LIG).

The royalty would now be deducted at source on thebasis of built-up area at the time of passing the buildingplan, instead of deducting the amount from the bills of leaseholders every now and then.

The materials covered under this resolution includesand, soil, gravel, blackstrap, building stones, limestone,sandstone, quartzite and bricks.

Rajesh Vaswani of Venus Infrastructure and DevelopersLtd termed it as a "negative move" which will have an adverseimpact on real estate sector and the property buyers.

"At a time when the real estate sector is underpressure following a number of taxes added during the lastcouple of year, this is a negative move by the StateGovernment," Vaswani told PTI.