AP Tourism Wants Green Buildings To Be Free Of Tax

Visakhapatnam: The tourism industry in Andhra Pradesh is strongly lobbying for various exemptions like payment of property tax for platinum rated buildings as part of resolve to encourage green buildings.

Tours and Travel Association of Andhra (TTAA) chairman O Naresh Kumar and president K Vijay Mohan in a representation to Chief Minister N Chandrababu Naidu said Andhra Pradesh has bright scope to become a role model by rolling out a slew of incentives to those investing in green buildings.

Natesh Kumar later told Bizz Buzz that the hospitality industry, which generally opts for green construction technologies and interiors to woo tourists, will stand to benefit a lot if green buildings are given its due recognition through financial incentives.

The government has been requested to exempt property tax payment by 60 per cent for three years for the first 100 platinum rated buildings by Indian Green Building Council, in AP. Naresh Kumar after meeting the Chief Minister said the proposal, if accepted, will help boost Brand Andhra Pradesh and set a trend for others to replicate in encouraging eco-friendly buildings.

With regards to the New Tourism Policy unveiled by the TDP-led NDA Government, Naresh Kumar and Vijay Mohan pointed out that to attract more investments and to reduce the entry cost for doing business and allay the apprehension that there will be delays in passing on the Incentives, the government should introduce Tradable Incentive Certificate (TIC) on the lines of Transferable Development Rights (TDR). TDR is given to real estate developers in lieu of part of their land to be surrendered for road-laying or other public purposes.

They said introducing TIC for part payment of the incentives receivable will help the industry towards payment of dues like plan approval amount and property tax to the local bodies and spur investments into Andhra Pradesh and pep up the spirit of the investors. This will also ensure speed of doing business-the new variant of ease of doing business, being promoted in the New Industrial Policy launched by the Chief Minister to bring more investments to the State.

Referring to SGST, Naresh Kumar said Andhra Pradesh at present is offering 100 per cent reimbursement of SGST for tourism projects. Since most States are financially stressed, investors would be happy if this is given as input credit every quarter or half year. Instead of reimbursement. This if provisioned in the GST portal will help a lot of private investments flow into the tourism sector, he pointed out.