Punjab cabinet approves hike in stamp duty rates to mobilise resources

The Punjab Cabinet passed the proposal to amend Schedule 1-A of the Indian Stamp Act, 1899, to enable increase in stamp duty rates.

As of now, Punjab raises Rs 50 crore from stamp duty, which would now go up by Rs 100-150 crore. (Image: PTI)

Chandigarh: The Punjab government on Wednesday approved the ordinance to enable increase in the stamp duty rates on property transactions. The Punjab Cabinet, headed by chief minster Captain Amarinder Singh, passed the proposal to amend Schedule 1-A of the Indian Stamp Act, 1899, to enable increase in stamp duty rates, reported news agency IANS. The decision came on the sidelines of mobilising additional resources for the state. According to a government official, the stamp duty rates for as many as 17 items stand to double following the amendment, which the Cabinet found to be essential to boost the revenue receipts of the state. As of now, Punjab raises Rs 50 crore from stamp duty, which would now go up by Rs 100-150 crore. The Cabinet's decision came keeping in mind that the new rates were higher than those of neighbouring Haryana but found it imperative to increase the rates to generate the much-needed revenue for the state. The last revision in stamp duty rates were made in 2009. As per reports, the ordinance would now be sent to the legal and administrative affairs department for its finalisation and later to the Punjab Governor for his approval. However, in a report published by Economic Times earlier this month, the Union government is now planning to bring in a uniform stamp duty rate across the country on transfer of financial instruments including debentures and stocks, a reform that will increase the ease of doing business in India. In another decision, the Punjab government has decided to amend the industrial policy to give investment incentives by way of Net SGST on intrastate sales to promote business enterprises in the state. The state cabinet meeting, chaired by chief minister himself, also approved global tendering for the upcoming hi-tech cycle valley on a 100-acre industrial park in Ludhiana, an official statement said. The state Cabinet noted that for effective implementation of the policy there was need to explicitly define and explain the term ‘Net SGST Incentive’. (With agency inputs)