The British Property Federation has attacked plans proposed for a new tax on development proposed last year in the Treasury's Barker Report.
It has claimed that this 'uplift tax' - which would aim to capture a share of the 'value' gained from a planning permission - would be impossible to administer.
The Barker Report argued that such a scheme would allow to the government to raise funds for the massive infrastructural investment needed in the Thames Gateway area.
The document's author - Kate Barker - said that developers should be taxed on the vast profits that they make simply from winning planning permission.
'The BPF is very concerned that the application of this Planning Gain Supplement would be both impossibly complex to measure and administer and would act as a deterrent to development,' a BPF position paper warned.
'The BPF understands the government's wish to find a way of ensuring a contribution from the property sector towards the cost of providing infrastructure.
'We do not believe that extracting a slice of the uplift in development value is a sensible means of trying to achieve this end,' the paper added.by Ed Dorrell