The assembly on Wednesday passed a bill that supports a government measure to reduce stamp duty, from 5 per cent to 3 per cent, for flats priced between Rs 20 lakh and 35 lakh.
The Karnataka Stamps (Second Amendment) Bill, 2020, also proposes to cut stamp duty for flats priced below Rs 20 lakh from 5 per cent to 2 per cent. The steps are aimed at driving demand in the real estate sector.
There’s also something for industries, too. The bill proposes exemption from registration charges and lower stamp duty for industrial units set up in backward areas. These benefits will be offered to industrial units based on certificates issued by district-level officers. The move is part of the industrial policy announced in August.
“It was a long-pending proposal to reduce stamp duty on housing. This will help in reviving the real estate sector,” said revenue minister R Ashoka, who introduced the bill in the assembly.
Industry representatives had urged the government to reduce the guidance value, which is the minimum selling price of a property in a particular location and which is considered to be higher in Karnataka than some other states. The government promulgated an ordinance to this effect last month and then tried to make it a law. The move drew criticism from treasury and opposition benches as members wanted the government to cut stamp duty on all housing units.
“The bill reduces stamp duty for only flats. This is a lopsided policy that will benefit only apartment developers. We want the reduction to apply to all types of units, including independent houses,” said senior BJP member Aravind Limbavali.