Kolkata, West Bengal government announced withdrawal of temporary relief measures provided to the real estate sector, including two per cent cut in stamp duty and 10 per cent cut in circle rate, with effect from Monday.
These benefits were introduced on October 30, 2021, to deal with the economic recession caused by the COVID-19 pandemic and were extended several times.
The previous extension was valid till June 30 this year.
"The matter has been further reviewed and considering all aspects, the Governor, in the interest of public service, is now pleased to decide that both the schemes of stamp duty exemption and circle rate reduction will be discontinued with effect from July 1." ,” a government circular said.
Sushil Mohta, chairman of CREDAI West Bengal and chairman of Merlin Group, expressed his gratitude to the state government for the relief measures, but also urged the administration to reconsider the latest decision.
“The stamp duty exemption and circle rate cut, which were extended for over two and a half years, significantly benefited the pandemic-hit real estate segment, which is the second largest employment generator and a major contributor to the state exchequer In 2023, Mohta said, "the sector contributed Rs 7,500 crore."
He urged the government to consider revising the circle rate to help the sector reevaluate the pricing of residential units.
Mohta also suggested reduction in stamp duty to further support the industry.
“We expect the sector to continue its growth trajectory with increasing urbanization and rising disposable incomes,” Mohta said.
These benefits were introduced on October 30, 2021, to deal with the economic recession caused by the COVID-19 pandemic and were extended several times.
The previous extension was valid till June 30 this year.
"The matter has been further reviewed and considering all aspects, the Governor, in the interest of public service, is now pleased to decide that both the schemes of stamp duty exemption and circle rate reduction will be discontinued with effect from July 1." ,” a government circular said.
Sushil Mohta, chairman of CREDAI West Bengal and chairman of Merlin Group, expressed his gratitude to the state government for the relief measures, but also urged the administration to reconsider the latest decision.
“The stamp duty exemption and circle rate cut, which were extended for over two and a half years, significantly benefited the pandemic-hit real estate segment, which is the second largest employment generator and a major contributor to the state exchequer In 2023, Mohta said, "the sector contributed Rs 7,500 crore."
He urged the government to consider revising the circle rate to help the sector reevaluate the pricing of residential units.
Mohta also suggested reduction in stamp duty to further support the industry.
“We expect the sector to continue its growth trajectory with increasing urbanization and rising disposable incomes,” Mohta said.
