The state government has decided to reduce the stamp duty to 5 per cent by the end of 2012 for implementing the mandatory reforms committed by it in its memorandum of agreement with the Union Ministry of Urban Development for sanction of Jawaharlal Nehru Urban Renewal Mission (JNNURM) projects. The centre has sanctioned Rs 12,523.86 crore worth of JNNURM projects for the state.
A decision to this effect was taken at a review meeting held by chief minister, K Rosaiah, on Saturday on the stamp duty reduction and JNNURM funds and projects. Other states including Gujarat, Maharashtra, Goa, Jharkhand, Sikkim, Tripura and Puducherry have already implemented the reforms. The chief minister said the state government also decided to implement it in spite of shortfalls in revenue realisation to dovetail the JNNURM funds.
According to an official press release, the chief minister also wrote a letter in this regard to Union urban development minister, S Jaipal Reddy. “With respect to the reform on rationalisation of stamp duty to 5 per cent by the end of the project period, the state government had committed to reduce it to 7 per cent by 2008-09. Due to the downtrend in the market and shortfalls in revenue realisation, this reform could not be implemented as committed. In view of continuing slump in government revenues, the issue was examined in detail and request that the following time lines for implementing the reform may be accepted,” Rosaiah stated in his letter.
The chief minister said that reduction in stamp duty to 7 per cent would be achieved by the end of 2011 and to 5 per cent by the end of 2012. He requested that the release of pending installments for completed works under JNNURM may be made at the earliest to keep up the pace of execution of works.
The state government had reduced stamp duty from 13.5 per cent to 11 per cent and subsequently to 9.5 per cent from August 1, 2005, before the commencement of JNNURM.
