In order to raise funds for key transport projects in city, Mumbai Metropolitan Region Development Authority (MMRDA) proposed a new cess, known as betterment tax, to be imposed on citizens residing along or in the vicinity of the upcoming projects.
The idea is at the proposal stage and it awaits the approval of the state government. The state urban development department would finalise a blueprint for this cess and thereafter it will be launched.
In order to implement the ongoing and new projects to upgrade the metropolis’ transport infrastructure, MMRDA may need to spend Rs 80,000 crore.
MMRDA plans to implement mono rail, metro rail, freeways, sea links, coastal roads and elevated corridor projects in the city.
The authority mooted the betterment tax on the lines of a similar levy in Singapore and some European countries.
But the realty sector is against it, saying the timing would be a problem, with the sector passing through rough weather.
Yomesh Rao, Director, Consultants, said property buyers were already paying a number of taxes and duties. Property developers will certainly pass on its burden to buyers. This will increase the realty prices, he said.
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