Cutting down prices, media advertisements not helping, experts blame recession and job losses
With the realty sector facing a slowdown, the Maharashtra government's revenue earning through the stamp duty and registration has come down drastically.
According to the revenue department data, in August this year, Maharashtra government earned Rs 1,374 crore by registering 1,12,790 documents while in July, the revenue was Rs 2,595 crore and 1,77,280 documents registrations. In June of this year, the situation was not very different, government earned Rs 2,535 crore revenue with 1,84,626 document registration while in May, it was Rs 2,772 crore revenue with 2,05,849 documents registrations. In April of this year, the revenue was Rs 2,150 crore with 1,73,248 document registration.
"The revenue through the stamp duty and registration has been sliding each passing month. Besides, the document registration is also going down. It shows that no new property registration has been taking place. Most of the revenue is earned through he leave and license," said senior revenue department official. He said that they are meeting the revenue target each year. "In 2016-17, government earned Rs 21,052 crore through stamp duty and registrations while Rs 26,470 crore in 2017-18 and Rs 28,579 crore in 2018-19," he added stating government data.
Another official clarified that in 2019-20, the government has set the target of Rs 27,000 crore. "Most of the revenue is generated through increasing the taxes. In rural area, we hardly charged the stamp duty and registration for the agriculture land. But now, we are charging 5% of total cost land against the 1% earlier. This new expansion has helped to meet the target. But we are not getting the much revenue from the metropolitan region like Mumbai, Thane, Navi Mumbai etc where the market is slow," revenue official explained.
Revenue Dept Data
|
| In 2019-20, govt aims to make revenue of Rs 27,000Cr |
| Rs 26,470 cr earned through stamp duty and registrations in 2017-18 |
| Rs 28,579 cr earned through stamp duty and registrations in 2018-19 |
| Rs 1,374 cr earned by Maharashtra government by registering 1,12,790 documents in August |
| Rs 2,595 cr earned by Maharashtra government by registering 1,77,280 documents in July |
Pankaj Kapoor, MD at Liases Foras, the real estate research firm said that the recession is one of the major reason behind this. "The automobile sector is down. The retrenchment is happening in big way in all sectors therefore the buying the dream home is the last priority for the people. They are holding back their decision," Kapoor stated. He said that the finance firm like Indiabulls and DHFL are no more giving the housing loan because of their own financial issues. "Many people who bought the flat earlier are now unable to pay the monthly EMI on time. They started defaulting. The salary and job is the major concern for urban buyers," Kapoor added.
Manohar Shroff, the vice president of Maharashtra Chamber of Housing Industry (MCHI), Navi Mumbai said, "Buyers are not responding. We are also giving advertisements in media but the response is very lukewarm. We have even cut down the prices still people are differing their decision of buying the house. Government should intervene and improve this sluggish market."
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