The Confederation of Real Estate Developers Associations of India (CREDAI) has urged the State government to take necessary steps to reduce the registration stamp duty from the present 7.5% to 2% to help the real estate sector which is reeling under the impact of the COVID-19 pandemic and other issues.
CREDAI Vijayawada chapter president R.V. Swamy, secretary D. Rambabu, Y. Ramana Rao and other members submitted a memorandum to Finance Minister Buggana Rajendranath Reddy in this regard on Tuesday.
They said the stamp duty was reduced from 7.5% to 2% in the year 2009 when Y.S. Rajasekhara Reddy was the Chief Minister of combined Andhra Pradesh. The G.O.Ms. No. 1 dated 01/01/2009 was kept in force for two years in view of the global financial crisis. This measure had helped the real estate sector a lot and still the builders remembered the gesture made by the late Chief Minister.
The reduction would help in raising the sale of flats and associated products, which, in turn, would increase the GST revenue. The reduction can be given for a certain period as a scheme, which will revive positive sentiment in the market, they said.
Plan approval fees
The association sought rollback of the recent hike in the stamp duty on gift, partition etc. deeds and a provision for payment of building plan approval fees in four instalments during the validity of the plan. Occupancy Certificate may be issued only after the payment of all the fees. The Telangana government took measures in that direction, they said.
