Holiday Homes in Goa, a dream of the nouveau rich, is all set to be costlier now with the Goa Government deciding to rationalise the real estate prices in the state. The Goa Government has decided to levy hefty occupancy tax on those dwellings purchased by non-Goans and left unoccupied, often used as holiday homes.
“The idea is to impose tax of Rs.200,000 to Rs.500,000 (about $4,000 to $10,000) per annum,” Chief Minister Digambar Kamat said. “The tax would be levied with retrospective effect.”
The move comes amid concern that the purchase of holiday homes, particularly by wealthier or retired people from places like Mumbai and New Delhi, has pushed up the cost of land and houses for native Goans.
The State Government has resolved to formulate the policy to levy occupancy tax, which would be hefty discouraging the practice of ‘holiday homes’.
The State Level Steering Committee (SLSC), a body of experts formed to frame regional plan 2021, a futurist land use plan for the state, had recommended the tax as a deterrent to escalating real estate prices and stress on land resources.
Goa has been a destination to buy second home for many urbanites from metros like Delhi and Mumbai, who often use it only for vacation. As a result, the properties were unoccupied most of the time.
Rahul Deshpande, an architect and SLSC member, said that soaring land prices was of a great concern for the planners who had sat to decide the land use for future.
“There is no sanity in rising prices which has made housing unaffordable for middle class Goans,” he said, adding that many non-goans who buy house here occupy it once a year, may be for New Year celebrations.
The planners hence felt the need to tax such houses, he said adding that these people don’t contribute for the economy of the state.
Deshpande explained that those people who do not have domicile certificate of Goa and don’t occupy the structure which they have purchased will have to pay the tax.
The State Government has exempted those people who have their businesses in the state as they contribute for state’s economy.
Foreigners are officially barred from buying property or land in India but some overseas nationals are thought to get around the rules by using local proxies.
The former Portuguese colony, with its long sandy beaches and laid-back atmosphere, has been a haven for foreign tourists since the days of the hippie trail in the 1960s and 1970s. Some 400,000 people come to the state every year from abroad.
