Mumbai : The state government is preparing to take a big decision to remove the sluggishness in the real estate sector. The current stamp duty of 5 per cent is likely to be reduced to 2 per cent. The state government's economic arithmetic has already deteriorated. In addition, reducing stamp duty can further reduce revenue. But the decision is seen as crucial to boosting the real estate sector.
The Mahavikas Aghadi government had given relief to the real estate sector by reducing stamp duty by one per cent in its first budget. But the subsequent Corona crisis ruined the whole math. Work stopped during the lockdown and was followed by a financial crisis. So right now people are turning their backs on home buying.
Representatives from the real estate sector had made a presentation to the government demanding reduction of ready reckoner and stamp duty. The government had recently appointed a committee headed by HDFC chief Deepak Parekh. The committee had called for recommendations to boost the real estate sector, one of which was to reduce stamp duty by 50 per cent.
After GST, sales tax and VAT, stamp duty is one of the biggest sources of revenue for the government. In 2019-20, the government received Rs 29,500 crore through stamp duty. In 2020-21, the government expects an increase of only Rs 500 crore. Meanwhile, the finance department is reportedly opposed to any cuts. Because, the state is already in financial crisis.
according to research company layasesa Fora, in the first quarter of the financial year could be sold in the Mumbai Metropolitan region with 63 9 6 yunitsacica. Compared to the same period last year, it is down 62 per cent.
Niranjan Hiranandani, president of the National Real Estate Development Council, said, "The reduction in stamp duty will not reduce any revenue for the government. If the real estate sector rebounds, it will boost all other sectors and increase government revenue.
