New surcharges likened to sin taxes
Just when it looks like Mumbai is recovering from the double whammy of India’s demonetisation drive and new housing law, property developers in the city are faced with a new levy on home sales.
Under a bill passed Tuesday by the Maharashtra assembly, buyers will be required to pay a surcharge of 1 percent on the value of the property sold, leased, mortgaged and gifted in the city.
The Mumbai Municipal Corporation Act (second amendment), pending governor’s assent, will compel the Maharashtra government to contribute a grant-in-aid to the company. The funds, equivalent to revenues from the surcharge, will be used to defray the municipal corporation’s plans to build a metro, monorail, freeways, and sea link.
The government decided to levy the surcharge as it has limited resources to raise money, an official of the Urban Development Department had admitted to BloombergQuint.
The surcharge will be on top of the 5 percent stamp duty and 1 percent registration fee currently in place on ready properties in Mumbai as well as the 12 percent goods and services tax (GST) levelled on under-construction apartments.
“Housing is a basic need but the government has taxed it like alcohol and cigarettes,” said Niranjan Hiranandani, co-founder and managing director of Hiranandani Group, and president of National Real Estate Development Council.
“The bill goes completely against the government’s affordable housing push.”
Despite a 128 percent year-on-year rise in fresh projects, sales inched forward by just 1 percent in the first half of 2018 from the same period a year ago, according to Knight Frank India.
Thai architects go global with non-formulaic design approach
The innovators behind Department of Architecture Co. prioritise the spirit of exploration over the need to develop a signature style
Delectable moments to remember from the 14th annual PropertyGuru Thailand Property Awards
All the things you missed at the kingdom’s biggest night for real estate
14th Annual PropertyGuru Thailand Property Awards 2019 presentation a landmark year for the industry
64 categories announced at the kingdom’s longest-running real estate awards programme
Thailand’s secondary property markets don’t play second fiddle
Chiang Mai and other secondary destinations in the kingdom are beginning to steal some of the limelight from Bangkok