The state has generated a significant revenue of Rs 3,597 crore through the Metro cess, a 1 percent stamp duty imposed on property registrations in major cities. Initially introduced in 2019 to fund crucial public infrastructure projects, the cess was briefly suspended in 2020 due to the pandemic and reintroduced in 2022. Revenue is collected through stamp duty on property transactions. Mumbai's stamp duty increased from 5 percent to 6 percent, while other cities went from 6 percent to 7 percent, adding around Rs 50,000 to property costs. Despite concerns, experts believe the cess will persist as long as property sales remain robust.
The state has amassed a substantial revenue of Rs 3,597 crore from the implementation of the Metro cess, an additional 1 percent stamp duty imposed on property registrations. This initiative was initially introduced in February 2019 across major urban centres, including Mumbai, Pune, Thane, and Nagpur, with the primary objective of financing critical public infrastructure projects. These projects encompass the expansion of metro networks, the construction of vital flyovers, and the development of key bridges. However, a noteworthy chapter in this endeavour occurred when, in March 2020, the Metro cess was temporarily suspended.
This decision stemmed from the widespread financial hardships caused by the global Covid-19 pandemic. It was only in April 2022 that the Metro cess was reintroduced, marking a significant return to this pivotal mechanism for funding essential infrastructure. The collection of this revenue hinges on the stamp duty applied to documents related to property transactions, covering sales, gifts, and mortgages. In Mumbai, the stamp duty rate was adjusted from 5 percent to 6 percent, while in other urban centres, it experienced an increment from 6 percent to 7 percent.
This 1 percent elevation in the stamp duty translated into an additional financial burden of approximately Rs 50,000 for property buyers, casting a profound impact on the real estate landscape. The preeminent contributor to the Metro cess collections is the Mumbai Suburban District, responsible for amassing a considerable sum of Rs 1,167 crore, marking the registration of an impressive 98,034 documents. Pune emerges as a key player in this narrative by registering the highest volume of property documents, recording an impressive count of 1.8 lakh, and garnering a remarkable Rs 1,150 crore in Metro cess revenues.
Worth noting is that, in the past, associations representing property developers had expressed concerns to the state government regarding the impact of the Metro cess. They feared that the additional stamp duty could potentially dampen property bookings and have adverse repercussions on revenue collections, particularly in the highest revenue-generating cities such as Pune, Nagpur, and Mumbai. In conclusion, the Metro cess remains a crucial source of revenue for vital infrastructure projects, despite variations in tax structures.
Advertisement
Facebook
Whatsapp
