Since an additional 1% Metro Cess is likely to be levied on all property purchases in Pune, Mumbai, Thane and Nagpur from April 1 this year, CREDAI-Pune Metro along with its other chapters has strongly opposed the proposal and appealed to the government for its Reconsider the decision.
“This cess will be for financing metro rail projects and transport related projects in the state and is expected to increase the revenue of metro rail services,” CREDAI said in a release.
The Maharashtra government had earlier imposed 1% stamp duty in the name of metro cess in all the cities where metro work is going on since 2017. Although, it was waived for two years by the government due to the Covid pandemic, but as per the latest it can be implemented again from April 1, 2022, on the instructions of the government.
Anil Farande, Chairman, CREDAI-Pune Metro, said, “The existing 1% local body cess and 1% metro cess in addition to the existing one will mean a direct increase in the purchase price of properties from one lakh to a few lakhs, which will accordingly affect the consumers. Will do Those who want to buy their dream home. The ill effects of COVID are not yet over and the industry, which is the second largest employer and contributes over 5-7% to GDP, may not grow again from the shock of this price hike. ,
As the cess increases, the stamp duty on property registration in Pune may increase from 6% in urban areas to 7% in urban areas. CREDAI has claimed that such an amendment will have an adverse impact on home buyers and the real estate industry, which has been badly hit due to the pandemic and is yet to fully revive. The association has already submitted a letter of appeal to Maharashtra Revenue Minister Balasaheb Thorat.