If two crucial bills are passed in Assembly this week…
julian d’cruz
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PANJIM: Cost of construction and housing in Goa could go up by more than 25 per cent, if two crucial bills, (The Goa Land Revenue Code (amendment) Bill 2013 and Indian Stamp Act (Goa amendment) Bill 2013), are passed in the Goa Assembly this week.
Passing of the two amendment bills in the Goa Assembly would make cost of conversion go up multiple times and registration of sale deeds an expensive affair.
The Confederation of Real Estate and Developers Association of India (Goa unit) has already made a strong representation to the Goa government voicing serious concerns of its impact on cost of construction which will hit an all time high in Goa.
A business which is already reeling by a 25 per cent increase during the last one year for several other reasons is not ready yet for another steep hike.
Nilesh Salkar, heading the CREDAI (Goa unit) claims that cost of construction will be up by nothing less than Rs 3,000 a sq mt. The speculation is that it could go as high as Rs 6,000 a sq mt considering many other factors as well.
“A 90 sq mt two bed-room apartment anywhere in Goa could now cost Rs 70 lakh,” said another member of the Association.
Salkar further said that tax on infrastructure was fine, “provided service connections come at no extra cost”.
Presently the real estate segment pays infrastructure tax, in addition to all other fees that come along for getting service connections.
“The process for providing the connections should also be expedited as even after paying we don’t get it on time,” Salkar said.
The CREDAI (Goa unit) is also apprehensive over the fact that it would now have to depend on cliental from outside Goa or India for purchase of houses as rising price of real estate is making housing too expensive for the local Goan community.
It is, however, hoping that the Service Guarantee Bill will bring some cheer.
The House is likely to witness a furore next week as legislators in the Opposition moving cut motions in a bid to apply brakes on the government’s overdrive to tax various kinds of trade in Goa.
The Curtorim MLA Alex Reginaldo Lourenco said, “When cost of construction material has already taken cost of housing beyond the reach of the common man and the real estate lobby in trouble, it is ironic that the government is adding more taxes and fees instead of relieving this section from its existing problems.”
Fatorda MLA Vijai Sardessai said, “a situation is being created where purchase of a house in Goa for the common man will be near to impossible.”
“The taxation regime is likely to finish off yet another industry in Goa,” Sardesai said.
The seventh and final week of the Goa Legislative Assembly is going to be closely watched by the real estate lobby and public at large as passing of two crucial bills, (The Goa Land Revenue Code (amendment) Bill 2013 and Indian Stamp (Goa amendment)
Bill 2013) will spell doom for those in the construction business and Goans aspiring to own houses in the State.
Likewise, the Goa Building (lease, rent and eviction) Control amendment Bill 2013 is also likely to have a big impact especially for a sizeable population of Goa who have rented premises.
