Mumbai already is the highest taxed city in the country with one of the most expensive lands around the world. Yet, the Maharashtra State Assembly has passed the bill to further increase stamp duty by 1%. The state is charging a duty of 5% along with a 12% GST and 1% registration charges on sale, resale or transfer of property. The state's recent legislation, the Mumbai Municipal Corporation Amendment Act (2018), is set to lead a gross percentage of about 19% on transfer of properties within the limits of Mumbai, justifying the need to raise funds for the infrastructural development and upkeep in the city.

This has welcomed a widespread frustration amongst the developers, builders, homebuyers as well as the industry experts. The existing tax rate is a humongous hurdle to the market and it proactively collects ample funds, which are getting over-utilised for petty projects, as per the agitators. Taxing more is set to strengthen the economic burden on home-seekers. Furthermore, the state is criticised for not being active in citizen participation when drafting plans and policies whilst expecting them to keep up with paying taxes as desired by the decree of assembly.

The government substantiates its argument by saying that this 1% surcharge has the potential of raising ₹1000 Cr. annually which would be directly contributing to Mumbai's public assets. Large projects like the metro and road-networks. Also, the rental agreements are kept aside from this amendment. Mumbai is the highest economically productive region in India, after Delhi NCR, and thus, the government seeks to elevate its infrastructure on the global standard.

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