Goa Govt Slashes Infrastructure Tax By 30%
In a major relief to the real estate sector, the Goa government has slashed the infrastructure tax, levied on the construction sector by 30 per cent with effect from April 1, as proposed in the State Budget 2021-22. The Chief Town Planner (Administration) James Mathew told that the notification will remain in force for six months and thereafter the government will revise the rates. Chief Minister Dr Pramod Sawant in the State Budget 2021-22 had announced to reduce the rate of infrastructure tax by 30 per cent for a period of six months. Accordingly, the Department of Town and Country Planning (TCP) on March 31 issued a notification slashing the tax rates by 30 per cent. As per the new rates, the residential buildings or structures, in the outline development zone, which admeasures 101 sq meters or above, will have to shell out Rs 140 per sq mtr against Rs 200 per sq mtr, while the commercial buildings will be charged Rs 560 per sq mtr as against Rs 800 and industries Rs 175 per sq mtr. The Communication towers, for which Rs 25,000 was paid, is now been brought down to Rs. 17500. For the structures in the Regional Plan, the residential project will be charged Rs 140 per sq mtr as against Rs 200 per sq mtr while commercials will have to pay Rs 420 per sq mtr as against Rs 600 per sq mtr. The industries, which were earlier charged Rs 250 per sq mtr, will now pay Rs 175 per sq mtr. The communication towers would be charged Rs 10,500. The Goa Tax on Infrastructure Act, 2009 was enacted for levying tax for providing infrastructure required for development which included potable water, electricity and other amenities. When contacted, Mathew said the notification will remain in force for six months, as proposed in the State Budget. “Thereafter it is for the government to take the decision, whether to increase or continue with the same tax,” he explained. In the State Budget, the government has also proposed to streamline the issue of incidence of double-taxation in stamp duty and registration fees to avoid financial hardships to the housing construction sector.