Maharashtra government plans to slash stamp duty and registration to boost real estate sector
State revenue minister said that presently the Maharashtra government charges a six per cent stamp duty against a total cost of the flat and 1% stamp duty or Rs 30,000 registration which is lower.
MUMBAI: The Maharashtra government has decided to slash stamp duty and registration charges to boost the ailing property sector.
State revenue minister Balasaheb Thorat has said that the developers body and various stake holders had approached him demanding reducing the stamp duty and registration charges. He said that presently the Maharashtra government charges a six per cent stamp duty against a total cost of the flat and one per cent stamp duty or Rs 30,000 registration which is lower.
"We will hear out all stakeholders and consult chief minister Uddhav Thackeray after which an appropriate decision will be taken to boost the real estate sector and economy. We have already taken several measures for hassle-free registration like giving online registration rights to developers who can do registration of their customers by sitting in their offices," the minister said.
In the lockdown period, Maharashtra has lost more than Rs 2000 crore revenue that generally generated through the stamp duty and registration.
Rajesh Prajapati, PR and media committee chairman at CREDAI- Maharashtra Chamber of Housing Industry (MCHI) welcomed the decision of the state terming it as much needed in this hour. He said, property sector works on the sentiments of the people.
"Due to the pandemic situation, the housing projects were halted. While many people lost their jobs in other sectors while some of the people who retained the job, their salaries were recalibrated. Therefore, the real estate sector is going thorough unprecedented and never imagined situation. We can to come out from this ailing situation only with the active support of the government," Prajapati said.
Real estate research firm Liases Foras said that the priorities of the people have been changed. "The COVID-19 has put the cascading effect not only real estate sector but other sectors as well. The blow due to COVID is very big. It will take time to come out from the glut. The government should slash the stamp duty and registration charges and subsequently developers reduce the soaring prices. The definition of affordability has to be changed keeping common buyers in mind, not the upper section of the society," MD Pankaj Kapoor said.