Mumbai: The Maharashtra government has proposed an increase in stamp duty to Rs 50 crore from the present Rs 25 crore on demerger and amalgamation documents.
This is on the lines of Rajasthan, Tamil Nadu and other governments. The state cabinet meeting on Wednesday is expected to give approval to the proposed in this regard moved by the state revenue department.
A Revenue Department officer told FPJ,’’ The proposed hike in stamp duty on demerger and amalgamation documents is as per section 9 of the Maharashtra Stamp Act, 1958, which empowers the state to reduce, remit or compound duties.
The government on May 6, 2002, had cleared a stamp duty of Rs 25 crore on demerger and amalgamation documents. After 18 years, the government has proposed doubling of the stamp duty to Rs 50 crore, considering the changes in the economy and in the industry.’’
It is also a part of the revenue department’s exercise to explore options to mobilize additional revenue for the state kitty. The department has set an annual target of Rs 27,000 crore through stamp duty and registration fee for the year 2019-20. Till December, the department has collected Rs 21,741.2 crore.
The stamp duty and registration is a major source of revenue after GST and state Excise Duty. As reported by the FPJ, the department is vetting multiple options to mop up additional revenue, especially in view of the economic slowdown.
They include revision in the stamp duty on mining lease, bringing in new rules for recovery of stamp duty on transferable development right, change in stamp duty on imported cargo delivery order at Mumbai international airport and simplification of stamp duty rate charged on bank documents.
