Home buyers could end up paying additional tax to respective urban local bodies while buying a house in the Mumbai Metropolitan Region (MMR) for funding upcoming infrastructure projects in the region. The fund will be collected from citizens in the form of the Urban Transport Fund (UTF).
The Union ministry of urban development had directed the state to collect funds for the infrastructure projects following which the Maharashtra government directed the Mumbai Metropolitan Region Development Authority (MMRDA) to appoint consultants for proposing ideas to create funds.
“The urban development ministry had shortlisted seven consultants for preparing proposals, out of which five consultants have submitted their ideas with us,” said a senior MMRDA official.
After collecting the proposals, the MMRDA officials will evaluate and scrutinise them before selecting one.
“The idea is to have a new form of taxation. When individuals purchase a new house they will be liable to pay UTF to the respective urban local body, which will later transfer funds to bodies that are involved in building infrastructure,” said the official.
“The proposals also have ideas like imposing tax when a particular building opts for redvelopment. It also has ideas where urban local bodies should set aside the funds they collect from parking for UTF. Various ideas will be explored before a final call is taken,” the senior MMRDA official added.
The Centre is of the view that that states should generate funds independently for infrastructure rather than relying on international banks for funding projects.
At present there are nine urban local bodies in the MMR, including areas like Thane, Kalyan-Dombivali, Ulhasnagar, Bhiwandi-Nijampur, Panvel, Uran, Kulgaon-Badlapur, Vasai-Virar and Mira-Bhayandar.
The Congress-NCP government, back in 2008, had implemented a similar plan to generate Rs 4,600 crore for funding the Pune metro project where it had also set up a dedicated body named Pune Metropolitan Development Authority (PMDA) on the lines of MMRDA.
It had also increased stamp duty in the state in 2008 — excluding Mumbai — to fund irrigation projects at that time.
