GOVERNMENT MULLS HIKE IN STAMP DUTY

IGR suggests revision in stamp duty on bank and stock transactions to mop up additional revenue

The cash-strapped Maharashtra government has proposed a slew of measures to increase the collection of stamp duty and registration fee. In Maharashtra's own tax revenue system, the income from stamp duty and registration fee come second after the GST collection.

Some of these include the revision in stamp duty on the transfer of development right (TDR), the increase of stamp duty to Rs 50 crore from Rs 25 crore on merger and demerger deals, the revision of stamp duty based on the floor space index valuation in the limit of 13 new nagar panchayats, municipal councils and a couple of new municipal corporations, except Mumbai, and recovering stamp duty from the air cargo delivery from Mumbai international airport.

A state revenue department officer told FPJ,''These measures were discussed at the presentation made by the Inspector General Registration (IGR) Anil Kawde to Revenue Minister Balasaheb Thorat. Restructuring stamp duty on leasing deals and imposing stamp duty on both the land under mining and the minerals sourced from those mines was also suggested. Stamp duty may be charged on transactions under Collateralised Borrowing and Lending Obligation and Clearcrop Repo Order Matching System. IGR has also proposed revision in stamp duty on the transactions in stocks and banks.'' He informed that the government has earned Rs 900 crore from the stock sale through stock exchanges.

The officer said that the government has set a target of stamp duty and registration fee collection of Rs 27,000 crore for 2019-20. The government, as on December 2019, has collected Rs 21,741.2 crore, which is 107.36 per cent more than the target of Rs 20,250 crore. He added, notwithstanding the economic slowdown, the IGR has hinted that the collection target of Rs 27,000 crore for the current fiscal will be achieved.

The government's collection of stamp duty and registration fee was Rs 28,277 crore in 20180-19, Rs 26,118 crore in 2017-18, Rs 21,026.7 crore in 2016-17, and Rs 21,657.5 crore in 2015-16.

Deputy Chief Minister Ajit Pawar, on Wednesday, said that the previous government had presented an annual budget for 2019-20 with a revenue deficit of Rs 20,292.94 crore. However, he said that the government is exploring multiple options to mop up additional revenue in the upcoming budget for 2021-22.

These measures were discussed at the presentation made by IGR Anil Kawde to Revenue Minister Balasaheb Thorat. Restructuring stamp duty on leasing deals and imposing stamp duty on both the land under mining and the minerals sourced from those mines was also suggested. -A STATE REVENUE DEPARTMENT OFFICER