Determined to boost the state’s beleaguered real estate sector, Punjab Government on Wednesday announced to slash the collector or circle rates in both urban and rural segments.
The collector rate in urban areas has been cut down by five percent and 10 percent in the rural region, said an official spokesperson after a high-level meeting chaired by the Chief Minister Captain Amarinder Singh.
The decision comes close on the heels of three percent reduction in the stamp duty on registration of property in the urban areas.
As per the notification, issued by the state’s Special Chief Secretary and Financial Commissioner (Revenue) Karan Bir Singh Sidhu, the reduction will be applicable only to the basic land rates and shall not apply to the rates for the super structures.
The reduction in circle rates has been notified under Rule 3-A of the Punjab Stamp (Dealing of Under-valued Instruments) Rules, 1982, as notified by the Punjab Government amendment notification dated November 22, 2016.
All the District Collectors have been issued necessary directive on revision in the circle or collector rates, said the spokesperson.
The decision is a part of the Congress led state government’s concerted efforts to revive the realty segment in the state, and comes days after the state Cabinet gave in-principle approval to cut down the circle rates.
The Cabinet had also decided to reduce stamp duty on registration of property in urban areas from nine to six percent till March 31, 2018, by removing the three percent additional stamp duty chargeable as Social Security Fund for this period through an amendment to Section 3-C and schedule 1-B of the Indian Stamp Act, 1899, as announced by the Finance Minister in his Budget speech in the state assembly.
In another important decision to propel the realty segment, the Cabinet had also decided to grant exemption from 10 percent 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.