State govt caps stamp duty on equitable mortgages, industrialists welcome move

The local industry has appreciated the Punjab Government’s decision of capping the 0.25 per cent stamp duty on equitable mortgages by a maximum of up to Rs 1 lakh.

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By issuing the notification regarding capping the 0.25 per cent stamp duty to a maximum of Rs 1 lakh payable on equitable mortgage bank loans irrespective of any amount of bank loan, the Chief Minister has given us a much-needed relief, said the industrialists.

The president of the Association of Trade and Industrial Undertakings (ATIU), Pankaj Sharma, said the step would save entrepreneurs’ funds, which they could further use as working capital or for business expansions.

“The ATIU has been raising this matter at various forums. But it must be kept in mind that this scheme will provide relief only to entrepreneurs who take loans above Rs 4 crore, while the others will have to pay 0.25 per cent duty, which will make availing loans more costly. The ATIU will urge the government to abolish the duty altogether without further delay so that permanent and complete relief can be provided,” said Sharma.

Members of the Chamber of Industrial & Commercial Undertakings (CICU) thanked the state government for this step. “The state government provided a major relief to industrialists,” said Upkar Singh.