MUMBAI: The Maharashtra cabinet on Wednesday approved the proposal of reducing stamp duty by three per cent for period September 1 to December 31, 2020, while reduction of two per cent between January 1, to March 31, 2021, across the state.
The state government charges a six per cent stamp duty against a total cost of the property and one per cent stamp duty or Rs 30,000 registration whichever is lower.
The proposal of reduction in stamp duty was mooted by revenue minister Balasaheb Thorat department on Wednesday. The New Indian Express was the first to report on August 16 that the Maharashtra government likely to reduce the stamp duty and registration to boost the sluggish property market.
Balasaheb Thorat said that it was long pending demand by the developers and stakeholders to reduce the stamp duty to boost the property sector and economy therefore they approved it in a cabinet meeting. Thorat said that the real estate sector is one of the major contributing sectors in the growth of the economy.
“Besides, many supplementary businesses are also depended on the real estate sector. If the real estate sector survives then other sectors can also do better. Therefore, it was need of the hour to do this moral and economy-boosting at this juncture where due to pandemic situation everything has come at a standstill. I am confident that this move will rebuild the confidence of buyers and sellers in the property sector,” revenue minister said.
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, the property sector works on the sentiments of the people so they are grateful to the government for taking the positive step.
Ram Raheja, Director, S Raheja Realty said, “This is a fantastic move by Maharashtra government. It will certainly boost sales as all those sitting on the fence will take the plunge. What is commendable is that they also put a timeline to it, which encourages buyers to buy sooner rather than later".
While Farshid Cooper, MD, Spenta Corporation said, the decision by the Maharashtra Government of reducing the stamp duty on a temporary basis will provide impetus to the realty sector that has been witnessing a slump and adverse impact of the pandemic. This announcement coming at the heels of the festive season will definitely help the sector improve its sales volume and velocity for the existing inventory available in the city".