BHOPAL : The real estate sector, which is already facing a sluggish trend, further faltered due to hike in stamp duty and cess proposed in the state budget. Stamp duty has been increased by one per cent and cess from 0.125 per cent to 0.5 per cent. Earlier, charges were at the rates of 7.125 per cent (5 per cent stamp duty, 1 per cent municipality as well as Panchayat and 0.125 per cent cess) while now it will be 8.5 per cent (5 per cent stamp duty, 2 percent municipality, 1 percent Panchayat and 0.5 per cent cess).
As per the real estate sector players, government should have expanded tax ambit instead of imposing more tax on people to generate more revenue. Real estate sector is one of the major employment generating sectors so it had big expectation from budget but as stamp duties and cess have been increased in the state budget, the real estate sector is in a state of shock. The builders had demanded package for the sector to revive the sector which is already facing adverse condition.
Advocate EA Qureshi said, “Earlier, charges were at the rate of 7.125 per cent (5 per cent stamp duty, 1 per cent municipality as well as Panchayat and 0.125 per cent cess) while now it will be 8.5 per cent (5 per cent stamp duty, 2 percent municipality, 1 percent Panchayat and 0.5 per cent cess). If property costs Rs 40 lakh, the entire registry charges used to be Rs 2.85 lakh at the rate of 7.125 per cent while now it will cost Rs 3.40 lakh at the rate of 8.5 percent. So now there is hike of Rs 55,000 more for purchasing of property of Rs 40 lakh.”
CREDAI general secretary Manoj Singh Meek said, “It is unfortunate that state government did not take any care for real estate sector which is one of major employment generating sectors. On the contrary, it hiked stamp duty and cess. Widening the purview of tax net would have been a better option to general revenue instead of taxing the people.
But state government preferred to tax the people to generate more revenue. Every government has two options to generate revenue.
First tax the people and second widen the purview of tax ambit.”
