CREDAI-MCHI urges Maharashtra government to cut stamp duty to 2%

In this regard, the association has written separate letters to addressed Udhav Thackeray, Chief Minister of Maharashtra, Ajit Pawar, Finance Minister and Deputy Chief Minister of Maharashtra, and Balasaheb Thorat, Revenue Minister of Maharashtra.

NEW DELHI: Realtors body CREDAI-MCHI on Tuesday demanded that the Maharashtra government should reduce stamp duty to 2 per cent in Mumbai for reviving housing demand amid the COVID-19 pandemic.


In this regard, the association has written separate letters to addressed Udhav Thackeray, Chief Minister of Maharashtra, Ajit Pawar, Finance Minister and Deputy Chief Minister of Maharashtra, and Balasaheb Thorat, Revenue Minister of Maharashtra.


CREDAI MCHI, which has over 1800+ member developers, requested the State Government to reduce the stamp duty at 2 per cent in Mumbai till March 2022.


Maharashtra government had in September 2020 announced a 2-3 per cent cut in stamp duty. It was valid till March this year.


In support of its demand, the association mentioned the slowdown in housing sales and the drastic reduction in stamp duty revenue collections for the State Government


CREDAI MCHI said that the downward trend is set to continue with numerous genuine buyers sitting on the fence due to higher transaction costs.


The industry body highlighted that the decision to reduce the stamp duty in August 2020 helped the sector immensely.


"However, the move to not extend the stamp duty rebate beyond March and the outbreak of the second wave has led to extremely subdued homebuyer sentiments as well as decreased collections for the authorities, with both Property registrations and stamp duty revenue collections down by 70 per cent in May as compared to March," the association said.


Deepak Goradia, President, CREDAI MCHI, said the association requested for an extension of the reduction beyond March to ensure that the momentum of this industrial and economic revival stays on its tracks.


"However, in the last couple of months, we've seen a steep downward trend in inquiries and sales, hampering not just the steady progress made by Real Estate but also the 250+ ancillary industries which come into play due to industry's strong multiplier effect," he added.


Goradia said the state government should realise the need for a stamp duty rebate to enhance homebuyer sentiments and also increase its own revenue collections.


Source: https://realty.economictimes.indiatimes.com/news/industry/credai-mchi-urges-maharashtra-government-to-cut-stamp-duty-to-2/83165194

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