Karnataka assembly passes bill to reduce stamp duty on flats
BENGALURU: On Wednesday the assembly passed a bill that supports a government measure to reduce stamp duty, from 5 percent to 3 percent. This rule will be applicable for flats priced between Rs 20 lakh and 35 lakh.
In addition to that the Karnataka Stamps (Second Amendment) Bill, 2020, also proposed to cut stamp duty for flats costs Rs 20 lakh from 5 percent to 2 percent. The steps are taken to drive the demand in the real estate sector.
The bill has something for industries, too. The bill proposes an exemption from registration charges and reduced the stamp duty for industrial units that are set up in backward areas. These benefits will be given to industrial units on the basis of certificates issued by district-level officers. This step is part of the industrial policy announced in August.
Revenue minister R Ashoka introduced the bill in the assembly and said “It was a long-pending proposal to reduce stamp duty on housing. This will help in reviving the real estate sector”.
Industry representatives had requested the government to reduce the guidance value, which is the minimum selling price of a property in a particular location. It is considered to be higher in Karnataka in comparison to other states. The government promoted an ordinance to this effect last month and then tried to make it a law. This move faced criticism from treasury and opposition benches because the members wanted the government to cut stamp duty on all housing units.
Senior BJP member Aravind Limbavali also said “The bill reduces stamp duty for only flats. This is a lopsided policy that will benefit only apartment developers. We want the reduction to apply to all types of units, including independent houses,” said.
