Industry lobby suggests stamp duty reforms

Monday, 08 December 2003, 20:30 IST
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CHANDIGARH: The Confederation of Indian Industry (CII) Monday said stamp duty rates prevailing in the northern region were a deterrent to the registration of properties and inhibited fiscal and economic health. According to a study released by the CII (Northern Region), the maximum stamp duty rate levied in most developed markets worldwide is in the range of one to two percent, but many northern Indian states levied double-digit rates. The chamber body said, "Thus, there is an urgent need for rationalisation in this area." The study underscored the fact that stamp duty rates in India varied state-to-state, ranging anywhere between six and 15 percent. It said, "Some states even have double stamp incidence, first on land and then on its development. With rates as high as 15.5 percent in Haryana, India has one of the highest levels of duty amongst major countries in Asia." For optimal reforms, the CII recommended adoption of a uniform approach by all northern states in bringing down stamp duty rates to a uniform level of four percent and abolishing provision of registration fee at the outset, reducing the number of specific duty rates and simplifying the current tedious process of stamp duty registration. Referring to the high stamp duty rates, the study said: "In addition to non-disclosure of transaction values, it also results in a huge loss of revenue to the state."
Source: IANS
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