Cash-strapped Punjab hikes collector rates to mop up Rs 1,500 crore more

Ruchika M Khanna

Tribune News Service

Chandigarh, August 7

The Punjab Government has decided to substantially increase the collector rates of land across the state. This will not only help the cash-strapped state get the much needed moolah, but also cut down on circulation of black money.

Sources told The Tribune that instructions were issued by KAP Sinha, Special Chief Secretary (Revenue), to all deputy commissioners-cum-district collectors yesterday for effecting and notifying the increase in collector rates. This is the first major exercise by the AAP government to rev up depleting revenues ever since it came to power in the state.

The collector rates have been increased substantially in Patiala district so far. The rate has been increased by 100 per cent. In Lehal, the collector rate for agricultural land has increased from Rs 70 lakh to Rs 1.50 crore per acre. In Dhaliwal Colony (Patiala), the rate has increased from Rs 56,680 per sq yrd to Rs 1.12 lakh per sq yrd.

In residential areas of the district, the increase is comparatively less. The rate in New Lal Bagh Colony has been increased from Rs 14,300 per sq yrd to Rs 16,000 per sq yrd. In Khedi Gujran, the collector rate of residential property had been hiked by almost five times, from Rs 3,445 per sq yrd to Rs 22,750 per sq yrd. Revenue officials said the upward revision should be commensurate with the market rates of property.

All other districts are also expected to follow suit soon. Officials in the state Revenue Department said the Budget gave a target of increasing the revenue from the registration of property by Rs 1,500 crore this year. The revenue collection from property registration was Rs 4,200 crore in 2023-24.

“We are planning to increase the revenue under this head by Rs 1,800 crore to touch the figure of Rs 6,000 crore. In the first four months of this fiscal (April to July), we managed to collect Rs 1,854 crore as stamp duty and registration fee. This gives us a hope of touching Rs 6,000 crore revenue by March 2025,” said a senior official in the Revenue Department.

Traditionally, the stamp duty and registration charges are increased by 5-10 per cent every year. The district magistrates are empowered to raise these rates after assessing the real estate sector in their districts. “The property rates have increased manifold in most big cities. It is wise to increase the collector rates so that black money is not circulated and the state earns extra revenue,” said the official.

Stamp duty collection up 71% in July

The state registered 71% increase in income under the head “stamp and registration” in July. Revenue Minister Brahm Shankar Jimpa said providing transparent and hassle-free services to the people was the main goal of the government. In July, the state exchequer received an income of ~463.08 crore under stamp and registration, which was 71% more than that collected in July 2023, he said.

Will curtail black money

The collector rates are being increased to make these commensurate with the rising real estate prices. This will help government earn more revenue, besides checking the circulation of black money. —Brahm Shankar Jimpa, Revenue Minister