CREDAI Bengal urges state to rationalise stamp duty

Kolkata: In the wake of a decline in registration of homes in July, CREDAI West Bengal, on Wednesday, called for rationalisation of stamp duty which will help increase home sale and increase contribution to state exchequer.

“The decline in registration of homes in July is related to the lifting of stamp duty rebate. The stamp duty in Bengal is on the higher side compared to other states. We recommend rationalisation of stamp duty that would witness a spike in sales and a better contribution to the state exchequer,” said Sushil Mohta,president, CREDAI West Bengal & chairman, Merlin Group.

According to a report by Knight Frank real estate consultancy, on a year-on-year basis, July 2024 saw a 13 per cent degrowth in apartment registrations. As many as 3506 apartments were registered in Kolkata Metropolitan Region in July 2024 compared to 4036 units last year, the data showed. This is the first month after the state government decided to withdraw the incentives i.e. 2 per cent stamp duty cut and 10 per cent reduction in circle rate.

During the three-year period of phase wise extension of the remission of stamp duty between July 2021 to June 2024, 143,864 residential properties were registered in the city, the data revealed. Compared to July 2023, the share of unit sizes up to 500 sq ft scaled up from 27 per cent to 45 per cent at the end of July 2024.

Apartments ranging in size from 501 to 1,000 sq ft witnessed their share taper from 51 per cent to 47 per cent during the same period. However, the share of unit sizes over 1000 sq ft reduced from 22 per cent to 8 per cent when compared between July 2023 and July 2024. Unlike the trends unfolding in other Indian cities, the registration of units sized above 1,000 sq ft has shrunk in the past one year, particularly since February 2024.