Transactions for sale, purchase, lease of real estate will be costlier by 1 per cent

01-Dec-2018    |    Source:    Mumbai Mirror

The state assembly on Tuesday passed a bill authorising the state government to impose an additional 1 per cent stamp duty on sale, purchase and lease transactions of property in Mumbai. According to the state government, its aim is to generate revenue for infrastructure projects like the metro, the coastal road and the Mumbai Trans Harbour Link, and the bus rapid transit system. 

This extra 1 per cent will be above the 5 per cent stamp duty that is already being paid. The state government hopes to generate around Rs 500 crore per annum through this move. 
A senior government official who did not wish to be named said, "such an arrangement already exists in cities including Pune, Nagpur, Nashik and Aurangabad. However, since the Act that governs the BMC is different, there was a need to it to impose such a duty.
 
"Property prices increase due to these infrastructure projects, and if a private person benefits from infrastructure projects underwritten by public funds, they should contribute some amount for such a project," he said.
This kind of levy is called a betterment charge of the impact fee. A senior government official said Ahmedabad had levied such a duty to recover the cost of its Bus Rapid Transit System, and Karnataka, Telangana and Andhra Pradesh were considering similar proposals.
 
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