Goa CM cuts infrastructure tax by 30% to revive real estate

Infrastructure Tax Cut Announced in Goa

PORVORIM – In an effort to revitalize Goa's real estate sector, Chief Minister Pramod Savant announced on Wednesday a 30% reduction in infrastructure tax levied on the construction industry. This tax cut will be in effect for a six-month period, commencing on April 1, 2021. The Chief Minister's announcement, made during his budget speech, signals a proactive approach by the government of Goa to address the challenges faced by the real estate sector.

Online Building Plan Approval System Expansion

In addition to the tax cut, the CM also put forth a proposal for broadening the scope of the online building plan approval management system. He proposed its expansion to encompass apartment buildings, commercial structures, and industrial edifices, signaling the state government's intent to encourage growth within the private sector. This initiative aims to streamline the approval process by transitioning to a more technologically capable platform.

Town and Country Planning (TCP) Department Initiatives

The Goa Town and Country Planning (TCP) Department is in the final phases of developing a new set of regulations and procedural strategies. These provisions are designed to facilitate the implementation of transferable building rights. This land mechanism is seen as a key enabler in property transactions and will assist in securing land for essential public projects. It also possesses the potential to contribute to the preservation of various cultural heritage structures throughout the state. This multifaceted approach by the TCP reflects the government's broader commitment to revitalization and sustainability.

Positive Response from CREDAI

Nilesh Salkar, President of the Confederation of Real Estate Developers' Associations of India (Credai), expressed his satisfaction with the government's responsiveness to the industry's concerns. "We are pleased that our appeals to the government received a positive response. The steps outlined by the CM in the budget speech will definitely strengthen the morale of our sector," Salkar stated.

Addressing Double Taxation and Streamlining Approvals

CM Savant further elaborated on the government's plans to simplify the issue of double taxation related to registration fees and stamp duty. According to the Chief Minister, this simplification will bring considerable benefit to the housing construction industry and alleviate financial burdens currently faced by developers. He indicated that several significant enhancements in the operations of the Planning and Development Authorities are also on the horizon. He added that notary engineers and notary architects will now be authorized to provide third-party certification for low-risk projects. This certification, issued by these designated professionals, will be recognized as valid by the TCP for the purpose of expediting technical approvals and issuing commencement orders. The Chief Minister affirmed that such measures are being implemented to foster growth within the housing sector and increase productivity.