The Maharashtra government considers continuing the 1% Metro cess on property registrations in metro cities. Citizens and realtors advocate for its withdrawal, citing the burden on property buyers. Read more about the ongoing debate and its potential impact on the real estate sector.
Debating the Future of Metro Cess: Maharashtra’s Decision Unveiled
In the ongoing discourse surrounding property registrations in Maharashtra’s metro cities, the state is leaning towards retaining the 1% Metro cess, an additional stamp duty introduced in February 2019. The revenue from this cess, exceeding Rs 3,000 crore until October, has fueled public infrastructure projects in Mumbai, Pune, Thane, and Nagpur
Calls for Withdrawal: Citizens and Realtors Appeal for Relief
Citizens and realtors have voiced concerns and appealed to the government to withdraw the 1% Metro cess, contending that it contributes to the overall stamp duty burden. State Credai president Pramod Khairnar emphasized the need to relieve citizens from this additional financial load, particularly considering existing expenses like stamp duty and GST.
Industry Perspectives: Impact on Realty Sector and Revenue Trends
Property developers and industry experts express their views, highlighting the impact of the Metro cess on property buyers. With demands for a reduction ahead of elections next year, real estate stakeholders believe that a decrease in stamp duty could revitalize the sector. The state registration department reports a significant uptick in property registrations and revenue collection post-pandemic.
Metro Cess Dynamics: Collection and Financial Implications
The Metro cess, collected through stamp duty registration for property transactions, has been subject to fluctuations. Initially discontinued in March 2020 due to the pandemic, it was reinstated in April the following year. The 1% increase in stamp duty, translating to an additional financial burden of approximately Rs 50,000 for an average property buyer, has been a point of contention.
Way Forward: Government’s Stance and Citizen Activism
Government officials from the revenue department indicate that, at present, there is no consideration for withdrawing the Metro cess. The decision on stamp duty reduction and ready reckoner rates will be deliberated at the end of March. Meanwhile, citizen activists persist in their requests for a reduction, citing the nearing completion of 80-90% of Metro work in Pune and other areas.