Pune: Credai opposes proposal to levy 1% metro cess on property purchases

“This cess will be for funding the Metro rail projects and transport-related projects in the state and is expected to augment revenues of the Metro rail services,” Credai stated in a release.

The Maharashtra government had earlier imposed 1% stamp duty in the name of metro cess in all cities where the Metro work is under construction since 2017. It was, however waived off by the government for two years due to Covid pandemic but as per the latest instruction from the government, it may be re-implemented again from April 1, 2022.

Anil Pharande, president, Credai-Pune metro said, “The already existing 1% local body cess and the additional metro cess of 1% will mean direct increase in purchase price of properties by a lakh to few lakhs, which accordingly will impact the consumers who are looking to buy their dream homes. The aftereffects of Covid have not yet been eliminated and the industry, which is the second largest employer and contributes to more than 5-7% of the GDP may not be able to rise again from shock of this price rise.”

As the cess will increase, the stamp duty in urban areas on property registration may rise from 6% to 7% in Pune. Credai has claimed that such a revision will have an adverse impact on the homebuyers and the real estate industry, which has been affected badly due to the pandemic and is yet to revive completely. The Association has already submitted a letter of appeal to Maharashtra Revenue Minister Balasaheb Thorat over the same.