To revive the badly-hit real estate sector, the state government is considering a proposal to reduce stamp duty and registration fees on real estate transactions. However, the government is doing a tight-rope walk as stamp duty and registration fees is one of the major contributors to its revenue.
The Hasmukh Adhia committee had recommended that the real estate sector be given sops to facilitate its revival, as this sector also provides large scale employment.
A key source in the government said that on the basis of the Adhia committee recommendations, and feedback received from real estate developers, the government is looking at a proposal to reduce stamp duty and registration fees on new properties. This, the source said, will motivate people to purchase properties.
“For affordable housing, the government is considering 2% to 3% rate reduction in stamp duty and registration fees from the present 6% rates. For properties that are priced above affordable housing category, it may be around 1% concession in stamp duty and registration fees,” the source said.
Even before the Covid-19 pandemic struck, the government was expecting a slump in revenue from stamp duty and registration fees. The 2018-19 budget estimates pegged revenue from stamp duty and registration fees at Rs 8,972 crore, while the 2019-20 estimate was lowered to Rs 8,700 crore.
