Government has to take steps to reduce registration stamp duty from 7.5% to 2% to help the real estate sector which is reeling under the impact of Covid-19,The Confederation of Real Estate Developers Associations of India (Credai) Andhra Pradesh
Credai also felt that shortage of skilled labour was a major concern in the state as over 40% of the skilled labour, who migrated to their hometown last year due to Covid-19 lockdown, is yet to return.
Speaking to TOI, president of Credai, B Raja Srinivas, said stamp duty was reduced from 7.5% to 2% in 2009 when Y S Rajasekhara Reddy was chief minister and kept in force for two years in view of the global financial crisis.
“The decision helped the real estate sector as buyers came forward to purchase flats and it pushed the growth of the economy. Now, we are urging the AP government to reduce stamp duty so that it would reduce the burden on buyers and push the growth of the real estate sector,” he added.
Credai members said the reduction would help in raising sale of flats and associated products in the cities as well as the towns across the state, which, in turn, would increase GST revenue. “We are seeking the reduction for a period so that it will send a positive message to the market,” they added.
Credai members also sought the rollback of the recent hike in the stamp duty on gift, partition, deeds and a provision for payment of building plan approval fees in four installments during the validity of the plan.
The hike in prices of cement and steel has not only placed a burden on middle-class home buyers but also on builders. Cement prices rose by Rs 100 to Rs 150 a bag, resulting in an escalation in the cost of flats by Rs 200 to Rs 300 per square foot while price of steel increased by Rs 30,000 a tonne, leading to an increase in flat prices, said Credai members.