Real estate property builders have urged the Maharashtra officials to defer their plan to levy an extra 1% metro cess on property deals within the state by at least two years.
Developers’ body Confederation of Real Estate Developers' Associations of India-Maharashtra Chamber of Housing Industry (CREDAI-MCHI) has written to deputy chief minister Ajit Pawar and income minister Balasaheb Thorat probing for a two-year postponement within the imposition of the cess, which is meant to support metro rail networks and different transportation infrastructure initiatives within the state. The state authorities plan to levy the 1% metro cess on property deals from April 1. Its metro cess’ postponement by at least two years could prove to be a significant relief for the sector, particularly in an environment where they are facing increasing cost pressures due to the price of raw materials, and the effects of the geopolitical scenario, Boman Irani, president of CREDAI-MCHI told the media. Developers consider that a new cess will solely disrupt the continuing restoration of the sector. They request the state government to review the proposal for an upsurge in the 1% metro cess, Sandeep Runwal – president of National Real Estate Development Council (NAREDCO) Maharashtra, told the media. The burden might be shifted to the homebuyers, leading to a flunk in the sales of the properties and will have a direct impact on the momentum that has been conducted for the past few months. Following the planned imposition of the metro cess, stamp responsibility on property registration in Pune and Mumbai, which are the nation’s costliest and biggest actual property markets, will be enhanced by one share level. In Mumbai, the stamp responsibility will increase to 6% of the asset’s worth whereas it might increase to 7% in Pune, Nagpur, and Thane. Image Source
