FIEO seeks withdrawal of additional stamp duty

Federation of Indian Exporters Organisations (FIEO) has expressed concerns over the state government's decision to levy additional stamp duty of 0.25 per cent on all loan agreements and asked the government to withdraw it immediately.

A memorandum to this effect was submitted to the chief minister Vilasrao Deshmukh and finance minister Jayant Patil by FIEO delegation led by S K Saraf.

According to the memorandum, Maharashtra accounts for nearly 30 per cent of loan transactions in the country and this stamp duty would increase the cost of borrowing for businessmen.

This might result in short term revenue generation for the state but the state would loose goodwill of the business community in long run.The community might raise loans from banks located outside Maharashtra.