The state government has increased the property registration fee by 0.5% to 1% in the affordable segment—Rs 50 lakh to Rs 75 lakh bracket.
Customers will now have to pay up to Rs 74,000 more, depending on the market value of the property, for registering their sale deeds.
The notification issued by the law department requires customers to pay 3% of the market value of the property while registering the sale deed, where the value of the property does not exceed Rs 75 lakh. Currently, the rates for registration up to Rs 50 lakh is 2% and above Rs 50 lakh and up to Rs 75 lakh is 2.5%.
“Effectively, it means that customers buying a flat valued below Rs 75 lakh will now pay an additional 1% towards registration,” Credai-Goa president Nilesh Salkar said.
State government sources said this was done to rationalise the registration fee, but Credai said it would drastically affect sales.
“This is counterproductive and comes as a complete surprise for us. The government thinks that it can mop up revenue but the world over it is well known that lower the taxes, higher the revenue mop-up. This will hit the industry and spoil the market for the next few years,” Salkar said.
The state government’s move comes at a time when the real estate sector is facing a severe slump in demand for flats and apartments. Builders and developers in the state want the government to roll-back the registration fee and if possible, even reduce stamp duty to help boost property sales.
Builders led by Credai will be meeting the law minister and submitting a representation to try and convince him of the need to roll-back this notification. Credai will try to build a case for Goa to take a cue from Maharashtra, which reduced registration fees for a short period to stimulate demand.
Covid-19 has dealt a crushing blow to the real estate sector with apartments and homes becoming more expensive and running into delays. A study conducted by Credai found that construction activity has been affected and that customers have delayed purchases due to the second wave.
Developers reckon that waiver of stamp duty or a reduction in stamp duty and registration fees will lead to demand creation.
Interestingly, transport minister Mauvin Godinho, who had pushed for a 50% reduction in motor vehicle tax in 2019, has been appointed as a member of the GST council’s group of ministers for boosting the real estate sector.