Kalyan Dombivli Municipal Corporation Reduces Open Land Tax
The reduction of open land tax by Kalyan Dombivli Municipal Corporation (KDMC) to 3.46 per cent from 10 per cent have got realtors in the Dombivli Kalyan region excited. Realtors say this will ease their burden of cost and will also bring down property rates by Rs 100 to Rs 200 per square feet.
The two-year-long struggle of DK (Dombivli Kalyan) realtors has finally borne results just ahead of the festive season. The KDMC reduced the exorbitant open land tax (OLT) the realtors were subjected to.
The new OLT at 3.46 per cent is applicable from March 2018, says assessor and collector, tax department, KDMC. The proposal for OLT reduction was passed by the KDMC general body on September 10.
This news has made the builders and developers in DK happy as they have been reeling under heavy OLT for past six to seven years. Everywhere else OLT is 1.5 per cent to 6.5 per cent of the property value. But it was 10 per cent in Dombivli Kalyan, says the president, MCHI (Maharashtra chamber of housing industry)-DK.
As per sources the realtors owe KDMC Rs 150 crores as dues and refrained from paying due to high OLT. But with the burden of 10 % OLT gone, people will start paying up and will be a source of income to KDMC as well, he adds.
Ex-president of MCHI-DK says that this will also affect property rates. Expect the customers to benefit as the rate of the property will go down by Rs 100 to Rs 200 per square feet. The property rate in Kalyan is Rs 5,000/square feet on an average.
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