17 , May , 2020
Jaipur: At a time when the real estate industry is expecting some relief from the state for the revival of the sector which has been decimated by the lockdown, it has rather received a shock in the form of increase in cess. The finance department on Friday increased the cow cess on stamp duty to 20% from 10% and added the funds will also be used for fighting natural or man-made calamities like draught, flood, epidemic and public health exigencies. With this increase the surcharge on stamp duty goes up to 30% including the Swachh cess of 10%.
The stamp duty was increased from 5% from 6% in the February state budget. With the surcharge increase of 10%, the total stamp duty has gone up to 8.8% from 8.2%.
“This increase will not benefit anybody including the government. Already the market is in a limbo-like state. Everybody wants the real estate sector to revive, including the government, the industry and the people engaged in the sector. The surcharge increase will only delay any chances of revival,” said Sunil Jain, president of CREDAI-Rajasthan.
He further added that the fate of over 300 industries is dependent on the sector, which employs a large number of people from various economic backgrounds. “We wanted the government to give the sector some incentives but instead of relief, they have raised taxes,” Jain said.
