Punjab to lower collector rates, stamp duty to boost realty sector

Chandigarh, Aug 4 (IANS) The Punjab Council of Ministers (CoM) on Friday in-principle decided to lower and rationalise circle or collector rates, while reducing stamp duty on registration of property in urban areas, to boost the real estate sector in the state.

Chief Minister Amarinder Singh, who chaired the cabinet meeting, directed a formal proposal on reduction in circle/collectorate rates to be presented in the next cabinet meeting, with the deputy commissioners to be instructed to formulate the new circle rates, a spokesman said here.

To boost the languishing real estate sector in the state, the cabinet also reduced stamp duty on the registration of property in urban areas from 9 per cent to 6 per cent till March 31, 2018.

"The cabinet decided to remove the 3 per cent additional stamp duty chargeable as Social Security Fund for this period," the spokesman said.

In another important decision to propel the reality segment, the CoM decided to grant exemption from 10 per cent increase in Change of Land Use (CLU), External Development Charges (EDC) and License Fee (LF)/Permission Fee from April 1, 2017 to March 31, 2020 for real estate projects.

The CoM also approved a new Marriage Palace Policy for regularisation of unauthorised marriage palaces, besides granting approval for construction of new marriage palaces across the state.

"The new policy is also aimed at facilitating construction of new marriage palaces, thereby mitigating the problems faced by owners of marriage palaces, besides ensuring safety and parking facility for the people gathering at such venues.

The cabinet decided to condone violations in building bylaws to the extent of 10 per cent," the spokesman, quoting the cabinet decision, said.