PUNE: Developer associations in the state have sought a reduction in stamp duty rate from the current 5% to 3%, arguing that it would invigorate the real estate market ahead of assembly polls.
Real estate industry representatives wrote to chief minister Eknath Shinde and housing minister Atul Save on Monday that a reduction in stamp duty would also help spur property transactions and potentially boost govt revenue.
State revenue officials, however, believe reducing stamp duty is improbable due to existing budget allocations and ongoing welfare schemes, with the department playing a key role in contributing to the state exchequer.
Shantilal Kataria, a national governing council member of the Confederation of Real Estate Developers’ Associations of India (Credai) referred to finance minister Nirmala Sitharaman’s recent call for states to consider such cuts.
“By reducing stamp duty to 3%, the state could replicate or even surpass the positive outcome of 2020-21. A reduced rate would make home-ownership more affordable, particularly for first-time buyers. It would create security for families and reduce the temptation for buyers to steer towards unauthorised construction. It would also improve city planning, and enhance the health and working efficiency of buyers, thereby supporting continued growth in all sectors,” he told TOI.
He added that it would sustain the high levels of property registrations, leading to increased stamp collections despite a lower rate, as demonstrated by past trends. Credai Pune has put up the recommendation to the housing minister too, he said.
Developers, in their letter to state govt, said the policy move would help sustain the positive market outlook for the real estate sector, boosting demand and supporting the broader economic recovery.
In the past six months, Maharashtra has registered 13.33 lakh documents, with a revenue collection of Rs 25,957.57 crore — nearly half its annual target. Data from the property registration department has shown that property registrations have crossed 2 lakh for all months, except Sept. In that month, there were only 1.9 lakh property registrations, primarily due to Pitra Paksh — a 15-day period that is considered inauspicious.
“Property registrations have been steady for two quarters without much of a dip,” a registration official told TOI on Thursday. This financial year, the state has set a target of Rs 55,000 crore for property registrations.
A revenue official said the developers’ demands are not likely to be accepted. “The state govt has launched many schemes, and the property registration department is key for funding. It is unlikely that the demands would be accepted. An earlier preliminary discussion too had ruled it out. The state govt has even kept the RR rates constant,” the official added.
Source Homevior.in
