Credai-Rajasthan urges govt to lower stamp duty in the next budget

In a meeting with the finance department to provide suggestions for the budget 2022-23, prominent real estate industry body Credai-Rajasthan asked the government to rationalise the stamp duty structure to create housing affordable for the common man. Realty developers who met Akhil Arora, principal secretary (finance), admitted that the government should release the provision for charging households residing in societies to give an additional sum for having access to Bisalpur water. Dhirendra Madan, president of Credai-Rajasthan, told the media that the continuous surge in DLC rates along with high stamp duty has an upward pressure on property costs. Real estate developers purchase land to develop housing units and sell to buyers. If the price of raw materials is high, it would be difficult to reduce costs for the buyers. That's why they want the state government to lower stamp duty and registration by 50%. Regarding the DLC rates in commercial malls, in many areas, the market value is much lower. Madan said this is causing problems in deals as taxes are to be paid on the DLC costs. The difference between DLC costs for residential and commercial malls must not be over 25%, added Madan. Along with surcharge, the stamp duty in Rajasthan is among the highest in the nation at 8.80%. Additionally, DLC rates are increasing continuously hitting the affordability for people. Likewise, the Credai-Rajasthan wanted the finance secretary to dismiss the anomaly of stamp duty on warehouses. The secretary of Credai-Rajasthan, Rajendra Singh Pachar, told the media that warehouses are authorised as MSME industrial units by the UDH. They are managed under the rules of the Rajasthan Investment Promotion Scheme-2019. But when it comes to stamp duty, they are charged as commercial units, which draw higher taxes. This anomaly requires to be fixed. Image Source