Goa Government Aims to Revitalize Economy with Real Estate Reforms

PANAJI

The State government is placing a significant bet on the construction and real estate sectors to revitalize the business climate. In the recently concluded monsoon session of the Goa Legislative Assembly, the government amended at least three laws that directly benefit players in these industries.

Two of the laws amended by the government halve the waiting time for individual builders and real estate firms to obtain construction licenses and occupancy certificates from civic officials. This move is expected to streamline the approval process and reduce bureaucratic delays.

A third law, tweaked by the government, provides direct financial benefits to industry players. Specifically, they will be permitted easier terms to pay infrastructure tax instead of paying it in a lump sum at the commencement of construction.

Town and Country Planning Minister Vishwajit Rane piloted the Bill which amended the Goa Tax on Infrastructure Act. Once it comes into force, builders and construction firms will be able to pay the infrastructure tax in two equal installments: one at the start of construction and the other upon receiving the completion certificate. Previously, the entire tax had to be paid upfront at the beginning.

Industry sources have noted that the easing of terms to pay infrastructure tax will be particularly beneficial for smaller players who execute projects with eight to twenty units. The reduced financial burden at the start of a project is expected to provide a significant boost to these firms.

"For larger players, the benefit of the easier terms may not be as significant, but it does impact initial investment costs considerably," a prominent Panaji-based architect, who requested anonymity, stated.

On reforming the licensing regimes for the construction and real estate sector, the government has made amendments to the municipal and panchayat laws to expedite the issuance of construction licenses and occupancy certificates. Minister Vishwajit Rane, who also holds the Urban Development portfolio, piloted the amendments to the Goa Municipalities Act, 1968, and the City Corporation of Panaji Act, 2002. Meanwhile, Panchayat Minister Mauvin Godinho piloted the amendment to the Goa Panchayati Raj Act, 1994, to incorporate faster processing of applications for construction licenses and occupancy certificates in the statute.

Once these amendments come into force, they will mandate chief officers in municipalities, the commissioner in the City Corporation of Panaji, and secretaries in panchayats to issue or reject construction licenses within 15 days of receiving the application. Previously, the wait period was 30 days.

Another amendment to the law governing stamp duty on property mortgage deeds and trust deeds could also have direct benefits for buyers availing of housing loans. Revenue Minister Atanasio Monserrate piloted the bill that amended the Indian Stamp Act, 1899 (2 of 1899), as in force in Goa. This amendment reduces the stamp duty financial burden on mortgagers when mortgaging property without giving possession.

These reforms are expected to create a more favorable business environment for the real estate sector, potentially attracting more investment and boosting the overall economy of Goa.