West Bengal Revokes Real Estate Relief Measures

The West Bengal government has announced the end of temporary relief measures for the real estate sector, which included reductions in stamp duty and circle rates. Introduced in October 2021 to counteract the economic slowdown due to COVID-19, these measures were extended multiple times but will now be discontinued from July 1.

The West Bengal government has decided to withdraw temporary relief measures for the real estate sector effective from Monday. These measures included a two per cent reduction in stamp duty and a 10 per cent slash in the circle rate, which were introduced on October 30, 2021, to combat the economic slowdown caused by the COVID-19 pandemic. The last extension of these benefits was valid until June 30 this year.

According to a government circular, the governor has reviewed the matter and decided to discontinue both the schemes for remission of stamp duty and reduction in circle rate from July 1. Sushil Mohta, President of CREDAI West Bengal and Chairman of Merlin Group, thanked the state government for the relief measures but urged reconsideration of the latest decision. Mohta, however, suggested revising the circle rate and reducing stamp duty further to support the industry.

He noted that the rebate and reduction had significantly benefited the real estate sector, which contributes substantially to the state exchequer and employment. In 2023, the sector generated Rs 7,500 crore from property registrations. Mohta expressed hope that increased urbanization and rising disposable incomes would continue to fuel growth in the sector.

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