Friday, June 13, 2008

Crazy Govt taxes on Housing

After the 5 per cent Value Added Tax (VAT) the state government is levying a 4.5 per cent service tax on all new flats.

The whole logic is funny coz already VAT is being paid on the entire component that goes into constructing a building.

The new taxes so that makes it Rs 4.5 lakh for a flat worth Rs 50 lakh, plus another 2-3 lakhs for registrations & brokerages.

Surprisingly this news has come only in Mumbai Mirror; no other publication or TV channel has picked it up.

I don’t know if this is true or not, if it’s true then am surprised that no one has come out and opposed it.

Does anyone have any answers or leads?

The story in Mumbai Mirror

Reminds me of stuff being done in Gulf to drive out immigrants by raising the cost of living, but then they guys who come to Bombay anyways will continue to live in Slums & Zhoppadpattis while the Middle Class will be automatically bhagaoed.