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From Rent to Asset: New Tax Formula Sparks Sharp Rise for Property Owners.

Margao House Tax Soars 300% as New Capital Value Method Takes Effect.                                                                                                                                               

The Margao Municipal Council (MMC) has introduced a new capital value-based method for calculating house tax, leading to an unprecedented surge of over 300% in property levies for new residential and commercial buildings. Effective from January 3 through a council resolution, the shift replaces the old rental value system with an asset-based approach. Under the revised formula, residential properties are taxed at 0.159% of their capital value, while commercial spaces face 0.25%. For a 100 sqm residential flat, annual tax has spiked from ₹2,000 to ₹6,600—a 225% increase. Commercial establishments have been hit harder, with tax on a 100 sqm unit rising from ₹2,700 to ₹12,000, a 342% jump. Industry experts warn this steep hike could dent business viability in Goa’s commercial hub. Municipal officials, however, clarified that the new method applies only to newly constructed properties, with older buildings continuing under the previous rental value regime.