Real estate association CREDAI-MCHI on Tuesday requested the Maharashtra government to cut the stamp duty to 2 percent in Mumbai to revive housing demand amid the COVID-19 pandemic.
The association wrote separate letters to Udhav Thackeray, Chief Minister of Maharashtra, Ajit Pawar, Minister of Finance, and Balasaheb Thorat. Deputy Chief Minister of Maharashtra and Minister of Revenue of Maharashtra.
Drastic reduction in stamp duty collection
In September 2020, the Maharashtra government announced a 2-3 percent reduction in stamp duty. The exemption became ineffective in March this year.
In support of its claim, the association cited a slowdown in housing sales and a sharp reduction in stamp duty collection for the state government.
CREDAI MCHI, which has more than 1,800 developer members, has asked the state government to reduce stamp duty to 2 percent in Mumbai by March 2022. In addition, authorities said the downward trend will continue and many potential buyers are hesitating due to higher transaction costs.
The industry authority noted that the decision to reduce stamp duty in August 2020 has helped the sector incredibly.
However, the decision not to renew the stamp duty refund after March and the outbreak of another wave has led to extremely low-key sentiment from home buyers. Revenue collection for the authorities has also fallen. Property registration and stamp duty collection fell by 70 percent in May compared to March.
Low inquiries since past few months!
Deepak Horadia, president of CREDAI-MCHI, said, the association has called for an extension of the cut beyond March. So that the momentum of this industrial and economic revival does not fade. “However, we have seen a strong downward trend in inquiries and sales in recent months. Which not only hampers the sustained progress made in the real estate sector but also the more than 250 aid industries that come into play. Goradia said the state government should be aware of the need to return stamp duty reduction. So to regain the confidence of home buyers as well as increase its own revenue collection.