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real estate | IST

Maharashtra cabinet clears proposal to cut government levies on real estate by 50%

Mini

Maharashtra Cabinet on Wednesday approved the proposal to cut real estate premiums by 50 percent till Dec 31, 2021.

Maharashtra Cabinet on Wednesday approved the proposal to cut real estate premiums by 50 percent till Dec 31, 2021, as recommended by Deepak Parekh Committee.
In a meeting chaired by chief minister Uddhav Thackeray, it was decided that developers availing the scheme would have to pay full stamp duty and registration charges on behalf of homebuyers.
The decision has been taken to boost the real estate sector hit by the coronavirus pandemic. Experts have termed it as an encouraging move by the Maharashtra government.
“This move will go a long way in expediting the project completion and the industry will witness new launches in the market. The industry applauds this booster dose making many projects viable and we shall adhere to the rules laid down in lieu of availing these benefits. Also, the reduction in premiums for new launches will help the development at the lesser input cost and over a period of time there is possibility of lower price for new inventories that shall come into the market,” said Dr Niranjan Hiranandani, President NAREDCO.
After being hit by the pandemic, the realty market has seen an uptick in the state post stamp duty cut by Maharashtra government and interest rate status quo by RBI in last four months. The reduction in premiums would help the Mumbai market as the city collected as many as 22 premiums under various heads, which is higher than other top cities. High premium puts a financial burden on developers leading to higher costs for the homebuyers,” said Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com.
Farshid Cooper, MD, Spenta Corporation, said the decision is encouraging for the real estate agency.
“This will boost new launches in the market and lead to a reduction in the project cost for developers. The stamp duty reduction helped the sector regain from the pandemic with property registrations rising in the state and now with lesser premiums, it will provide great impetus to the business. Homebuyers should definitely consider this as a golden opportunity to buy their homes,” he said.
Earlier, the Maharashtra government had slashed stamp duty on sale deed documents by 3 per cent from September 1 to December 31, 2020, and by 2 per cent from January 1, 2021 to March 31, 2021