CREDAI MCHI requests the Government for reduction in stamp duty till the end of current financial year Latest News

Realty developers have urged the Maharashtra government to reduce stamp duty charges to 2% till the end of current financial year. This is in the backdrop of a slow down in housing sales and resultant decline in the government's revenue collection due to the second Covid-19 wave

Developers' body Credal MCHI requested the government to reduce the charges in separate letters to chief minister Uddhav Thackeray finance minister Ajit Pawar and revenue minister Balasaheb Thorat.

The lobby group also suggested that stamp duty in other cities be brought down to 3% from the existing 6%.

"The real estate sector in Maharashtra and more specifically in Mumbai, was thriving on the back of the stamp duty rebate announced by the state government in August," said Deepak Goradia, president of Credal MCHI.

The developer's body had requested for an extension of the reduction beyond March to ensure Industrial and economic revival was on track.

"However, in the last couple of months, we've seen a steep downward trend in enquiries and sales, hampering not just the steady progress made by real estate but also the nearly 260 ancillary Industries, which come into play due to Industry's strong multiplier effect," Goradia said.

The state government should realise the need for a stamp duty rebate to enhance the sentiment of homebuyers and increase its own revenue collections, which have taken a massive hit in May, Credal MCHI said.

The state government had announced a reduction in stamp duty charges to 2% from 5%, from September to December-end last year. Stamp duty was charged at 3% of the agreement value between January and March 31. This was done to kick-start the real estate sector and nearly 260 linked Industries by encouraging housing sales

The government's revenues from property registrations during seven months till March 2021 were 66% higher than during the preceding eight months of 2020 till August 2020.