The budget for 2018-19 proposes to hike the value added tax (VAT) imposed on registration of smaller flats and re-registration of older ones.
Finance Minister AMA Muhith has proposed to increase the VAT on registration of flats up to 1,100 square feet (sqft) to 2 percent from 1.5.
Re-registration of old flats will require paying a 2 percent VAT.
However, VAT for flats between 1101 and 1600 sqft have been proposed to reduce to 2 percent, from the previous 2.5 percent.
The VAT for flats above 1600 sqft has been kept unchanged at 1.5 percent.
Registration cost of flats, depending on its size, is between 14 and 16 percent of the price, on top which the VAT has to be paid.