In its maiden budget, the MVA government reduced stamp duty on real estate by 1 per cent for Mumbai, MMRDA Region and Pune for a period of two years.
Tabling the first budget of the Maha Vikas Aghadi (MVA) government, which completed 100 days in office on Friday, Deputy Chief Minister Ajit Pawar, who also holds the finance portfolio, announced tax concession proposals.
This included 1 per cent stamp duty concession for the next two years and other related charges applicable on registration of documents in the areas falling under the Mumbai Metropolitan Region Development Authority (MMRDA) and municipal corporations of Pune, Pimpri-Chinchwad and Nagpur. Pawar said the concession in stamp duty will help promote the real estate sector in the wake of slowdown.
Welcoming Maharashtra government's move, Dr Niranjan Hiranandani, President ASSOCHAM & NAREDCO, said, "Any cost reduction is welcome, and this move will positively impact home buyer sentiment. I appreciate the concern shown by the state government to help the home buyer as also real estate Industry."
Earlier, developers had met Maharashtra Chief Minister Uddhav Thackeray and had given few suggestion to help boost the industry. The suggestion put forward by industry bodies was for a 50 per cent reduction.
"We view this move as a beginning. Now that the state government has identified Industry problems, they will be sympathetic and are expected to take measures to improve the situation. These moves should result in a push to sales, with an increase in numbers," Hiranandani said.
"While this move will impact collections, which might go down by an estimated Rs 1,800 crore, I am confident that this shortfall be recovered through alternative avenues as also the impact of multiplier sales that will happen," he further added.
Due to the tax concessions, it is expected that there will be yearly revenue loss of around Rs 2,500 crore. Similarly, Pawar proposed to increase VAT (value-added tax) on petrol and dieselby Re 1 per litre. This will enrich the state exchequerby an additional Rs 1,800 crore, thefinance minister told the assembly.
