New property tax will affect the property transactions adversely. The builders say that the new property tax is wrongly assessed.
Under the new property tax, Babu Naik will have to pay an additional of Rs.7000 per year. When he questioned the civic body officials, they explained to him that the value of his property has increased over the period and so does the tax.
However he could barely believe that his apartment would worth so much that was almost three times higher than the amount for which he bought it a couple of years ago. One thing he was sure that in his location there will be no one to buy a home at this price.
This is not the sole story of Babu Naik alone. The builders say that this sis common in many of the cities in Bengal including Kolkata.
The builders blame the civic body for valuing their properties very highly. Due to this higher valuation, there is also a rise in the tax. Thus stating the irregularity and higher prices, the developers demanded the removal of the new property tax system.
The prices may be small or big. The main issue is that the buyers will have to pay additional stamp duty while buying any property. Thus it adversely affects the property transactions in the state.
Bengal Chapter of the Confederation of Real Estate Developers’ Association argues that the new property tax system will affect the realty sector. The apex body of developers says that the property transactions are sure to fall in Bengal.
The new property tax was included in the Finance Bill. The bill however was welcomed with strong disappointment and anger by the developers in the state. One of the main problems with the new system is that the property valuation is not done properly. In most of the cases, the prices remain far higher than the actual market price.
