‘Remission of stamp duty, circle rate to end from July 1’

Kolkata: An official communique from the state secretariat (Nabanna) on Monday announced that the Governor has decided that the state government’s scheme for remission of stamp duty by two per cent and circle rate by 10 per cent will stand discontinued from July 1.

The communique read that to combat the economic slowdown due to Covid pandemic and to provide stimulus to commercial activities and relief to the home-buyers of the state in public interest, the state government had temporarily reduced the rate of stamp duty by 2 per cent and the circle rate by 10 per cent upto January 31, 2022. This was further extended several times to provide support to the affected stakeholders considering the then continuing impact of Covid 19 pandemic. The last extension was valid till June 30, 2024.

“The matter has been reviewed further and considering all aspects, the Governor, in the interest of public service, has now been pleased to decide that both the above mentioned schemes for remission of stamp duty and reduction in circle rate shall be discontinued with effect from 01.07.2024.” the statement read.

However, the real estate fraternity has urged the state government to consider a revision in circle rate which would help the sector reevaluate the pricing of residential units. It also requested reduction in stamp duty to a certain extent.

Sushil Mohta, president, CREDAI West Bengal and chairman, Merlin Group said: “We would urge the Govt to consider a revision in circle rate which would help the sector reevaluate the pricing of residential units.

Since the response from people had been good on the stamp duty rebate, we would urge the state to reduce stamp duty to a certain extent. We hope the sector is resilient enough to continue its growth trajectory with increased urbanisation and rising disposable income of the people.”

He thanked the state government for announcing the rebate in stamp duty and circle rate and extending for over two and half years.

“It benefitted the pandemic ridden real estate segment which was the second highest employment generator and a substantial contributor to the state exchequer.

In 2023 the sector contributed 7500 crore on registration of properties to the exchequer,” he claimed.