Goa hits holiday ‘homes’ with tax
PANAJI, India, Nov 11, (AFP): Second homes in Goa owned by people from outside the Indian resort state are to be slapped with tax of up to $10,000 in a bid to make property more affordable for locals, the government said Friday.
“The idea is to impose tax of 200,000 to 500,000 rupees (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.
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.
The committee that recommended the occupancy tax, which will be implemented from a date yet to be fixed, said many second home-owners only came to Goa once a year during holiday season or at New Year.
As a result, the properties were unoccupied most of the time.
Exemptions were granted to second home-owners who have business in the state because of their contribution to the local economy.