Reduce tax on commercial properties: CREDAI Nashik
NASHIK: Members from Nashik chapter of Confederation of Real Estate Developers’ Association of India (CREDAI) want the Nashik Municipal Corporation (NMC) to reduce the property tax levied on commercial properties.
The business of renting out commercial properties has been adversely affected in Nashik due to Covid-19 and the higher property tax rates that came into force from the 2018-19 fiscal.
According to experts from the real estate sector, rent on commercial properties was slashed by 20% during the two years of the pandemic. Since then, the market has witnessed some recovery and the rent has increased by 10%. But it is still lower than the pre-Covid level.
Now, the main worry for the owners of the commercial properties is the increased property tax that was increased in the year 2018-19 from Rs 19.80 per sq metre to Rs 79.20 per sq metre. The owners are now finding it unaffordable to renew the contracts at existing rates.
Umesh Wankhede, a senior CREDAI member, said there was a four-time hike in commercial property tax by the NMC. “The owners of the commercial properties already had signed agreements and there was no scope for them to increase the rent after the property tax was increased. Thereafter, the pandemic also hit the realty sector and the owners had to slash the rent,” he said.
“We want the NMC to reduce the property tax on commercial properties. Though the sector is in recovery mode, the lease rate of the commercial properties is still 10% lower than the pre-Covid level. Increasing the rent has already proved futile as there are not many takers,” he added.
Meanwhile, a delegation of CREDAI Nashik is expected to meet municipal commissioner Chandrkant Pulkundwar to discuss the issue.