Home >Industry >Infrastructure >Karnataka cuts stamp duty on flats to boost property sales

Karnataka government has cut stamp duty on property, the Hindustan Times reported. Reading out Budget for 2021-22, Karnataka chief minister B S Yediyurappa said that the stamp duty for apartments valued between 35-45 lakh has reduced to 3% from 5%. Karnataka chief minister, who holds the finance portfolio, presented the state budget, his eighth in the legislative assembly, for the fiscal year 2021-22 in the Assembly on Wednesday.

"To promote affordable housing, the stamp duty for the first registration of apartments valued between 35 and 45 lakh is proposed to be reduced to 3% from 5%," he said.

"The year 2020-21 due to COVID-19 pandemic has caused untold miseries to the general public. I am not willing to put the burden of additional taxes on the common people," Yediyurappa added.

Commenting on how this decision will affect the buyers, Anuj Puri, chairman – ANAROCK Property Consultants, said, "While the move does carry a feel-good factor and will strike the right sentiment chord, it is not likely to give a significant boost to housing sales in Bengaluru on the lines of what we saw in Mumbai."

Earlier, the Maharashtra government decided to reduce all premiums related to the sector by 50%. It will be applicable till 31 December 2021. All projects which want to avail of the premium concession will have to pay full stamp duty for the customers till 31 December.

"Maharashtra had reduced stamp duty for properties across all budget segments — not just one category. The fact is that housing demand in Bengaluru is largely skewed towards the mid segment, involving properties priced within the 50 lakh to 1 crore budget range. For these properties, the stamp duty charges remain the same at nearly 5%," Puri added.

"The reduction will help propel demand for the sub-50 Lakh residential market. This is a great first step and we hope that the sops are extended to homes in upper price bracket as well. In doing that will the true potential of the market will be realised," said Shishir Baijal, chairman and managing director, Knight Frank India.

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