Key Smart City Scheme Measures from the Finance Bill 2025:

Written on 08/11/2025
Profmark Team

  1. Revoked Incentives (Effective 5 June 2025):

    • Exemptions on land conversion tax, registration duty, land transfer tax, customs duty, and morcellement fees.
    • 8-year income tax holiday for new Smart City Certificate holders.
    • Accelerated annual allowance on specified capital expenditure.
  2. Transitional Incentives:

    • VAT repayment for smart city companies or developers until 30 June 2027 on buildings and infrastructure.
    • 8-year income tax holiday for projects with Smart City Certificates issued before 5 June 2025 or involving public transport station construction.
    • Customs duty exemption for goods used in public transport station/terminal construction.
  3. New Fee Requirement:

    • Smart city companies or developers must pay a fee under the Morcellement Act to the Economic Development Board for parcelling out land.

These changes aim to streamline the Smart City Scheme while phasing out older incentives.