Stamp duty cut led to rise in revenue, 3% waiver generated ₹ 367 crore, says Thorat

Stamp duty cut led to rise in revenue, 3% waiver generated ₹ 367 crore, says Thorat

The Maharashtra government on Friday said, “Government’s revenue from registration of documents rose by Rs 367 crore due to a 3 % waiver in stamp duty between September and December 2020”.

The government had reduced stamp duty from 5% to 2%, introduced in September for four months till December 31. From January 1, the rates will rise by 1% till the end of the ongoing fiscal year, was aimed at reviving the construction and real estate sectors, which were in mess due to the corona virus-induced lockdown and resultant economic recession.

According to the data, in December 2019, a total of 2, 39,292 registrations generated revenue of Rs. 2,712 crore. In December 2020, the figure greater than before to 4, 59,607 and the revenue earned was Rs. 4,314 crore; a 92% rise in registration and compared with 2019, 59 % growth in revenue.

The stamp duty was six per cent in urban areas and five per cent in rural areas, both of which were brought down by three per cent.

State Revenue Minister Balasaheb Thorat said that the government reduced stamp duty to boost the real estate market, which was facing a slowdown due to COVID-19 and the subsequent lockdown. It gave brilliant results and the State Treasury has benefited from it. He said even the Centre appreciated the move and has appealed to other States to follow Maharashtra’s example.