Major slump in stamp duty collection in Punjab

This was because the SAD-BJP government gave major push and rebates to private builders and realtors.

Published: 17th February 2017 05:29 PM  |   Last Updated: 17th February 2017 05:29 PM   |  A+A-

Image used for representational purpose only

By Express News Service

CHANDIGARH: In the last five years the revenue collection from stamp duty for the Punjab government has fallen sharply from Rs 3,090 crore per year (in 2011-2012) to an estimated Rs 1,600 crore as of December, 2016.

This was because the SAD-BJP government gave major push and rebates to private builders and realtors.

After wining the 2012 elections, the government hiked the External Development Charges (EDC) and Change of Land Use (CLU) charges for private developers many fold.

In 2011-12, the State government earned Rs 3,090 crore from stamp duty, while in 2013-14 the stamp duty collection came down to Rs 2,560 crore and in 2014-15 it further fell down to `2,502 crore. 

This financial year the target was Rs 2,700 crore but till December end, last year the government got only Rs 1,600 crore.

The auction of commercial and residential property by the government urban bodies across the state have over the years witnessed unexciting response from buyers. 

Also property prices are witnessing a downward trend.

Some revenue officials blame demonetisation for the slump in stamp duty. 

Sources in the state finance department point out that the stamp duty collection by March 31 this year will be
approximately Rs 1,800 crore only due to the present scenario. With looming elections Punjab Deputy Chief Minister Sukhbir Singh Badal has relaxed EDC and CLU charges.

The stamp duty is 6 per cent for men and 5 per cent for women and the registration fee is at 1 per cent.

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