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Mumbai: Duty collection from flat sales, rent unchanged

According to figures accessed by DNA, the revenue collection from the sector has not seen any drastic change over the past year.

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If the data from Mumbai's property registration department is anything to go by, the talks of a slowdown may appear exaggerated. According to figures accessed by DNA, the revenue collection from the sector has not seen any drastic change over the past year.

The government collected Rs 3,826 crore through registration and stamp duty in the first seven months of this calendar year as against Rs 3,837 crore for the same period last year. The total collection for the entire 2018 stood at Rs 6,354 crore.

"People are talking of recession and drop in revenue everywhere, but our department is not witnessing any such slowdown. We are getting more revenue in suburbs than Mumbai city," said a senior official from the revenue department.

However, developers insist their business is down by 30%.

Nayan Shah, president of Maharashtra Chamber of Housing Industry (MCHI) said that the picture is no more rosy in the realty sector. "The Maharashtra government has increased the stamp duty from 5% to 6%. There is an amnesty scheme which pushed up revenue despite a slowdown. Also, the government has increased taxes," he said.

Shah said a big chunk of the revenue in the real estate sector comes through rent and resale of houses. "We request the government to take immediate measures to arrest the slowdown and boost sales. In new projects, we are hardly seeing any significant sale," said Shah.

Pankaj Kapoor, managing director at real estate research firm Liases Foras, said the property market is in a correction mode. "Those who want to buy a house for residential purpose, they are anyway buying it. One thing is clear that today's market is user-driven, not investors. Developers will have to adjust to some course corrections to boost sales," Kapoor added.

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