Government's idea to boost the construction business
MUMBAI : Builders' associations have been demanding a reduction in stamp duty to boost the purchase of collapsed houses. However, the government could not take a firm stand on the issue as the coffers were declining. However, the government is now seriously considering a two to three per cent rebate on the fee and a decision will be taken in the next fortnight.
Even before the Corona crisis hit, the construction business was in turmoil. Corona has caused the business's dollar to plummet. 1 lakh 80 thousand houses are waiting for customers in Mumbai metropolitan area alone. So, almost as many houses are under construction in the next two years. However, the future of these houses is in jeopardy as the demand for houses has dropped significantly. Builders have begun to lower house prices. Banks have also made home loans available at low interest rates. However, these businesses are still pushing for lower house prices to attract more customers. For this, the state and central governments are constantly demanding reduction in stamp duty and waiver of GST.
While presenting this year's budget, the government has decided to give a one per cent rebate on stamp duty on transactions in metros. As a result, it was estimated that the revenue from the treasury would be reduced by Rs 1,800 crore and the revenue would be around Rs 28,000 to 30,000 crore. However, due to the corona, these estimates have collapsed and it is doubtful whether at least Rs 15,000 crore will be collected. Currently, a stamp duty of five per cent is levied on the transaction amount. If two to three per cent discount is given in it, the revenue will be further reduced. However, if the buying and selling transactions increase, the collection of stamp duty will also increase and it is hoped that the other 250 industries dependent on the construction business will also get a boost. Such demands are being sent to the government by the organizations. The government has also started thinking positively about it and will adopt a favorable policy for stamp duty waiver, said a cabinet minister.
