The Uddhav Thackeray led Maharashtra government has slashed stamp duty to 2% till December to prop up property purchases and give a boost to the ailing real estate sector. The government’s move to reduce stamp duty on sale deed documents by 3% from 1 September to 31 December 2020, and by 2% from 1 January 2021 to 31 March 2021 has been welcomed by the real estate players.
Welcoming the state government’s move CREDAI National Chairman Jaxay Shah said that the decision will restore confidence among buyers, foster demand and provide a stimulus to the allied industries along with employment generation. He also pointed out that in previous instances whenever stamp duty was reduced, government treasury revenue had increased.
Supporting Shah’s views, NAREDCO National President Niranjan Hiranandani said that this will stimulate demand and convert enquiries to orders. Real estate sector can expect to see some increase in the volume of transactions.
CREDAI-MCHI President Nayan Shah also echoed similar views and speaking to the media he said that the decision was a breather and for the revival of the Mumbai Metropolitan Region's realty which otherwise has come to a standstill due to the pandemic.
Meanwhile, reacting to the fact that stamp duty collection is one of the largest contributors to the state’s revenue, Anarock Chairman Anuj Puri said that government can still benefit from the increased registrations that are expected to happen after this announcement. With festive season coming up later this year property consultants believe that they could see some uptick in buying.