Punjab cabinet approves hike in stamp duty rates to mobilise resources

Tribune News Service
Chandigarh, October 17

The Punjab cabinet on Wednesday approved an ordinance to amend Schedule 1-A of the Indian Stamp Act, 1899, to enable increase in stamp duty rates.

Stamp duty rates for 17 items will double following the amendment, which the Cabinet found to be essential to boost the revenue receipts of the state, an official spokesperson said here.

The cabinet, under the chairmanship of Chief Minister Capt Amarinder Singh, noted that the new rates were higher than those of neighbouring Haryana but found it imperative to increase the rates to generate the much-needed revenue for the state.

Among items on which the stamp duty has been hiked are adoption deed, affidavit (including an affirmation or declaration in the case of persons by law allowed to affirm or declare), agreement or memorandum of an agreement, relating to sale of a bill of exchange, relating to the sale of a government security or share in an incorporated company or other body corporate, relating to the sale of immovable property, article of association of a company, when the authorised capital of the company does not exceed Rs 1 lakh.

Punjab raises Rs 50 crore from the stamp duty, which would go up by Rs 100 crore-150 crore with the increase in rates.

The cabinet also noted that the last revision in the rates was done in 2009, the spokesperson said.

The ordinance would now be sent to the legal and administrative affairs department for its finalisation and later to the Punjab Governor for his approval. With PTI