Property Purchase To Become Dearer
State Budget To Impact Real Estate Sector
Residential and Commercial property purchases in Mumbai are expected to become dearer as the state finance minister Sudhir Mungantiwar plans to allow additional floor space index (FSI) with premium.
The government has proposed to enhance FSI limit to 0.60 from 0.33 and increase the rate of premium in the BMC limit. Further, the government also plans to hike the rate of premium on grant of all kinds of additional FSI in municipal corporation and municipal council limits.
Currently, the premium charged by BMC was Rs 1,500 per sq ft which is expected to increase to Rs 3,000 to 9,000 per sq ft in various parts of Greater Mumbai. Realty players are expected to pass on their burden on the property buyers.
NCP leader Chhagan Bhujbal criticised the decision of the government. However, Chief Minister Devendra Fadnavis defended the decision saying that earlier, the benefits of low premium rates were going to the builders. “With this decision, the government has diverted the benefits to itself for larger good,” he said.
Fadnavis also said that a revenue of Rs 4,000 to Rs 5,000 crore were expected through the provision.
Finance minister Sudhir Mungantiwar also clarified on his decision to abolish the LBT. “’The enhanced rate of tax will be applicable to the whole state. A revenue neutral rate has been recommended considering the share of increased tax collection to be given to the areas where LBT is not levied. A decision in this regard will be taken after due consultations and thereafter LBT will be abolished from August 1,” he said. As far as Mumbai is concerned, BMC gets substantial revenue by levying Octroi duty on crude oil. The amount collected by oil companies as part of state specific duty from all consumers in the state. This aspect will also be taken into account, the minister added.
Source :- Free Press Journal
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