The West Bengal government announced the withdrawal of the temporary relief measures provided to the real estate sector that included a two per cent reduction in stamp duty and a 10 per cent slash in the circle rate, effective from Monday. These benefits were introduced on October 30, 2021, to combat the economic slowdown caused by the COVID-19 pandemic and were extended several times.
The last extension was valid until June 30 this year.
“The matter has been reviewed further and considering all aspects, the governor, in the interest of public service, has now been pleased to decide that both the schemes for remission of stamp duty and reduction in circle rate shall be discontinued with effect from July 1,” a government circular said.
Sushil Mohta, President of CREDAIWest Bengal and Chairman of Merlin Group, expressed gratitude to the state government for the relief measures but also urged the administration to reconsider the latest decision.
“The rebate in stamp duty and reduction in circle rate, extended for over two and a half years, significantly benefited the pandemic-ridden real estate segment, which is the second highest employment generator and a substantial contributor to the state exchequer. In 2023, the sector contributed Rs 7,500 crore from property registrations,” Mohta said.
He urged the government to consider revising the circle rate to help the sector reevaluate the pricing of residential units.
Mohta also suggested a reduction in stamp duty to further support the industry.
“We hope the sector will continue its growth trajectory with increased urbanization and rising disposable incomes,” Mohta added.
