Follow Us:
Tuesday, May 24, 2022

Developers in Punjab oppose new levy on property transactions

Developers in Punjab today opposed the state government's move to levy social infrastructure cess on property transactions,saying it would hit demand in the sector which is already facing slowdown.

Written by Agencies | Chandigarh |
August 29, 2012 8:36:33 pm

Developers in Punjab today opposed the state government’s move to levy social infrastructure cess on property transactions,saying it would hit demand in the sector which is already facing slowdown.

“The imposition of (social infrastructure) cess is not a right move by the Punjab government as it will further aggravate realty’s woes,” Confederation of Real Estate Developers’ Associations of India (CREDAI),Chairman (Punjab),Anil Chopra told PTI today.

Punjab cabinet yesterday decided to levy social infrastructure cess for health and education at a rate of 1 per cent on property transactions,besides raising the ceiling of registration fee from Rs 30,000 to Rs 2 lakh. Proposal for increasing mutation fees at ‘Fard kendras’ has also been approved.

The Punjab government with these proposals would fetch additional revenue of Rs 480 crore from real estate sector.

Best of Express Premium

What makes KuCoin P2P Trading Platform a Good Choice To Buy Crypto?Premium
Airtel Demonstrates Immersive Video Entertainment On 5G; Recreates Kapi...Premium
Is It A Good Idea To Keep One Account For All Your Financial Transactions?Premium
Touching The Sky : SIMS, Pune Alumni On A Path To Make A DifferencePremium

Terming the current phase in the state’s realty sector as the ‘worst’,Chopra said property transactions were already not happening because of weak sentiments and depressed demand.

Chopra said the poor demand in realty sector could be gauged from the fact that the collector rates at several places are more than the market rates.

The Punjab government had hiked the collector rates manifold in April this year in a bid to raise its revenue from real estate sector. Punjab levies stamp duty at a rate of 6 per cent in rural and 8 per cent in urban areas.

Asserting that the imposition of new cess at this point of time was not a right step in the wake of sagging demand,real estate company Hexagon,AGM,D L Banga said the real estate market was already marred by oversupply of apartments and plots.

“Real estate investors are not participating in property transactions,which have contributed in slowing down of demand. Only end-user is in the market which wants to buy only ready-to-move in houses,” Banga said.

Punjab’s real estate market has not been growing for the last over 10 months and sentiments remained subdued.

Latest Comment
View All Comments
Post Comment
Read Comments

For all the latest News Archive News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard

Featured Stories

Malaika Arora demonstrates three yoga asanas to reduce belly fat; watch
Nikhat Zareen: 'My mother was crying and said no one would marry me. I re...Premium
RRR: SS Rajamouli's epic tests the limits of believability, but nothing i...
Kartik Aaryan on Bhool Bhulaiyaa 2 breaking Bollywood's jinx at box offic...
Jo Jeeta Wohi Sikander at 30: Akshay Kumar was rejected for this Aamir Kh...Premium
Advertisement
Advertisement
Advertisement
X