Builders awaiting government decision; Concerns of revenue sinking to the state government
MUMBAI : Builders' associations have been demanding for the last three months that the state government should waive stamp duty to recover the dollar from the sale and purchase of houses collapsed due to corona. However, the state government is not taking a decision for fear of losing revenue. The UK government has made a significant decision to waive stamp duty to boost home purchases. He is confident that it will boost the economy. In the same vein, the Maharashtra government has also demanded that the decision to waive stamp duty be announced.
Home sales have plummeted since the Corona crisis. Mumbai In the metropolitan area, 16,000 houses were sold in the three months from April to June last year. This year the number has come down to 2,687. In the MMR area alone, about 1.5 lakh homes are waiting for customers. Banks have cut interest rates on home loans and builders have cut prices slightly, but home purchases do not seem to be gaining momentum. It is not possible for developers to lower the price beyond a certain limit and financial institutions that provide loans for projects do not allow it. However, the developers say that if the government reduces the stamp duty or waives it for a certain period of time, it will definitely boost home purchases. It is the second largest employer in the construction industry, followed by a chain of 250 products. Government intervention is needed to prevent financial catastrophe on those businesses.
The government's position on the stamp duty waiver could not be ascertained as Revenue Minister Balasaheb Thorat could not be reached. However, stamp duty is the largest source of government revenue and is expected to fetch Rs 30,000 crore this year. Corona has posted a deficit of Rs 6,000 crore in the first quarter. While the expected revenue from the remaining sources is Rs 84,000 crore, only Rs 42,000 crore has been received. Therefore, the state treasury is in dire straits and the decision to waive stamp duty would be a bold one, officials said.
Home buying and selling transactions will increase
Although the buying and selling of houses has started in the unlinked phase, its pace is very slow. Decisions like the reduction of stamp duty will definitely create a positive atmosphere for home buying. This will encourage families who dream of a new home to buy a home. The reduction in stamp duty will bring down house prices. It will increase buying and selling transactions and provide the expected revenue to the government.
- Niranjan Hiranandani, National President, Naredko
The need for government intervention
The economic slowdown, hand akhadata with customers lacking supply of financial institutions debt has been difficult so many reasons .. The sector grants scheme by the government to boost , cut stamp duty rates, change policies in foreign guntavanukitila, debt one time ristrakcaringa yansarakhya profoundly government intervention in various fronts Is needed.
Source lokmat
