1% metro cess back on property purchases in four cities - Mumbai, Thane, Nagpur and Pune.

April 01, 2022 06:00 pm

In Feb 2019 Maharashtra Government had decided to levy 1% metro cess on property purchases in Mumbai, Pune and Nagpur. However with the outbreak of pandemic the same was stayed.

"This is not a new decision. We are reviving the earlier decision, which had to be discontinued due to the pandemic," said Bhushan Gagrani, principal secretary for urban development.

"Our target is to get revenue of ₹700 crore to ₹800 crore annually. Till March 2020, we got a revenue of approximately ₹500 crore to ₹550 crore,'' he added. The metro cess is intended to fund transport infrastrucuture projects in these cities.

Due to the metro cess, stamp duty on property registrations will go up by one per cent, he said.

Recently, UBS securities, in a report said, the Mumbai property market that accounts for 10% of national volumes, 23% of sales and a third of the margins, is on the cusp of a historic upcycle on all fronts, having already hit a decadal high of new or primary sales in 2021 selling 38,000 units despite the pandemic-induced disruptions.