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Govt to cut stamp duty to 5 pc by 2012

Sat 24th Oct 2009 09:02 AM
Govt to cut stamp duty to 5 pc by 2012
Govt to cut stamp duty to 5 pc by 2012

Hyderabad,Oct 24: The State Government on Saturday decided to reduce the Stamp Duty to 5% by the end of 2012 for implementing the mandatory reforms committed by the State in its Memorandum of Agreement with Ministry of Urban Development for sanction of JNNURM projects in the State. It may be stated here that the Government of India has sanctioned Rs.12,523.86 crores worth of JNNURM projects in Andhra Pradesh.The Chief Minister K Rosaiah held a detailed review meeting on the Stamp Duty reduction and JNNURM funds and projects with minister and officials at Secretariat.Many other States like Gujarat, Maharashtra, Goa, Jharkhand,  Sikkim, Tripura and Pondicherry have already implemented the reforms.

The Chief Minister said the State Government also decided to implement it in spite of shortfalls in revenue realization to dovetail the JNNURM funds.The Chief Minister also wrote a letter in this regard to the Union Minister for Urban Development, Mr Jaipal Reddy. Mr Rosaiah said in his letter “with respect to the reform on rationalization of Stamp Duty to 5% by the end of the project period, the State Government had committed to reduce it to 7% by 2008-09.Due to the down trend in the market and shortfalls in revenue realization, this reform could not be implemented as committed. In view of continuing slump in Government revenues, the issue was examined in detail and request that the following time linens for implementing the reform may be accepted”.“Reduction to 7% will be achieved by the end of 2011 and reduction to 5% by the end of 2012.

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The Chief Minister requested that the release of pending instalments for completed works under JNNURM may be made at the earliest to keep up the pace of execution of works”.It may be stated here that the Government have reduced Stamp Duty from 13.5% to 11% and then to 9.5% on the value of instrument from 1-8-2005 before the commencement of JNNURM.Minister for stamps and Registration, Gade Venkat Reddy, Principal Secretary, Finance, G Sudhir, Principal Secretary, Revenue, Ashutosh Mishra, Secretary, MA&UD, Pushpa Subramaniam, Commissioner & IG, Stamps & Registration, B.Aravind Reddy and other officials attended the meeting.