In a major relief to property buyers and the ailing realty sector, the Maharashtra government, in the wake of the coronavirus spread, has waived the payment of additional 1 per cent stamp duty, known as Metro cess, in the Mumbai Metropolitan Region (MMR) and in the areas of Pune, Pimpri Chinchwad and Nagpur Municipal Corporations from April 1, 2020, until April 1, 2022.
Deputy Chief Minister Ajit Pawar, who presented the annual budget for 2020-21 on March 6, had announced 1% cut in stamp duty. The government expects to lose Rs 2,500 crore but hopes to meet the gap with payment of stamp duty and registration charges following a surge in property sales. It was imposed on February 8, 2019, by the previous BJPled government to mobilise funds required to finance a slew of infrastructure projects including Metro rail with an investment of Rs 1 lakh crore in these areas. One per cent stamp duty was applicable on transfer of immovable property. The total duty paid was 6%. Furthermore, the stamp duty on ascending gift deeds within the family will be Rs 200.
Vijay Chaudhari, deputy secretary in the state urban development, on Saturday issued government notification in this regard. Builders Association of India spokesman Anand Gupta told FPJ, "The government’s move will marginally help to keep real estate property rates low and improve the sentiments of buyers."
The realty players at their series of meetings with Chief Minister Uddhav Thackeray and Housing Minister Jitendra Awhad had demanded reduction in stamp duty by 50% pertaining to the residential housing units in Mumbai and the rest of Maharashtra.
CREDAI-MCHI and NAREDCO had pleaded that 6% stamp duty on residential housing adds to the financial burden of the home buyers. They insisted that the government needs to reduce stamp duty by 50% for all residential houses by March 31, 2020, so that the dwelling units are more affordable and economic. This will further help in boosting sales and liquidity in the cash strapped real estate sector.
