Great news for the construction industry in Punjab and should it be enough to give it a jolt to re-start?
The provincial government has announced to reduce the Stamp Duty fee by 1% (previously it was 2%) and has now fixed it at 1%. The idea is to jumpstart the industry which has gone dormant in the recent months, create employment and raise revenues for the provincial coffers.
Stamp Duty Fee in Punjab: Then and Now
In June 2022, in its provincial budget 2022-23, Punjab government increased the Stamp Duty fee from 1% to 2% on urban immovable properties. This was done with the intention of generating more revenues. However, now the government has reverted back to the old Stamp Duty fee of 1%. Interestingly, the rationale being given is the same – to generate more revenues.
Simply put, if you are buying a plot for say Rs.10,000,000, you would have to pay the Stamp Duty fee of Rs.100,000 rather than Rs.200,000.
Is This Enough to Make the Construction Industry Vibrant Again?
Frankly, we’ll have to wait and see. A vibrant construction industry is like solving a jigsaw puzzle where all the pieces have to come together to make a complete picture. Finding one missing piece of the puzzle may not be enough.
Building a house, for example, involves much more than getting a piece of land transferred in your name. Unless the cost of construction and the rest comes down, which has exorbitantly gone up in the recent months, reducing the cost of property transfer alone may not be enough.
Let us know what you make of this news and leave your valuable comments in the section below.
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