An inter-ministerial team led by the Deputy Legal Advisor to the Government and the Director General of the Ministry of the Interior has published recommendations for changes in the area of betterment tax, aimed at reducing existing uncertainty. The main recommendation is to postpone the date of the tax event in complex projects, so that the betterment tax applies only to certain building rights. The team also suggests establishing binding timelines for conducting betterment assessments by local committees, in order to streamline the process. Additionally, it was recommended not to impose a tax on planning schemes from which a building permit cannot be obtained. The recommendations also include developing an appraisal framework that will take into account rulings in the field of urban renewal. However, some express disappointment with the recommendations, claiming that they do not provide substantial solutions to the existing problems in the betterment mechanism. Legal disputes are expected to continue, but the recommendations may ease planning and permitting processes in the future.
End of Speculations? Inter-Ministerial Team Recommends: Betterment Tax Only on Certain Building Rights
Source Nadlancenter
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