CREDAI Pune Metro urges Maharashtra government to reduce stamp duty; review ready reckoner rate

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Letter sent to Maharashtra Chief Minister, Deputy Chief Minister, top IGR-Stamp officials

PUNE: Stressing that it will be a win-win situation for consumers, the real estate industry, and even the state government, CREDAI Pune Metro has urged the Maharashtra government to reduce the stamp duty rates and has written in this regard to Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis and top IGR-Stamp officials.

Stating that in many areas, the ready reckoner rates are higher than the transaction market rates, the real-estate body has also urged the government to review the same and is constantly taking up the issue with the Chief Minister and his deputy.

Presently the stamp duty rate is 7 percent, which is unaffordable to the middle-class home buyers which constitute 60 % of the population. Thus, we request the Maharashtra government to reduce the stamp duty rate, which will benefit the consumers at large. The reduction in stamp duty rate will reduce the overall price of the unit and thus consumers will have to pay lesser EMI or could help in reducing the term of the loan,” said CREDAI Pune Metro President Anil Pharande.

CREDAI Pune Metro Vice President Ranjit Naiknavare cited an example of how a reduction in stamp duty rates will benefit the common home-buyer.

“For instance, by reducing the stamp duty rates by 3 percent, the EMI and the interest burden will soften the financial burden to the common home buyers. For example, a middle-class person buys a home property in an urban area in the range of Rs. 70 to 75 lakhs. By reducing the stamp duty rates, his EMI will be reduced to Rs. 20000 to 25000 approximately per year, which is a great relief to home buyers. Likewise, the flats in the range of 30-50 lakhs can also see a proportionate reduction in EMIsNaiknavare said.

Ranjit Naiknavare maintained that stamp duty reduction will not affect the government’s revenue as it has been seen in the past, during the COVID-19 period.

We have seen in the past that the stamp duty reduction did not affect the revenues of the government. The reduction of stamp duty will boost the real-estate sector as more units will be sold and since more units will be sold, it would also not impact the revenues of the state government. Thus, all three stakeholders can reap the benefits,” Naiknavare said.

The reduction can help in maintaining stable growth of the economy. The real estate industry is the second-largest employment generator, contributing 8 percent of the GDP and we thus urge the government to consider this request

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