States’ revenue via stamp duty, registration up 35%

CHENNAI/NEW DELHI: State governments’ revenue through stamp duty (SD) and registration charges (RC) touched Rs 94,847 crore in H1FY23, showing a rise of 35% against the same period of the last financial year.

According to a study by Motilal Oswal Financial Services, average monthly revenue collection in H1 of 2022-23 was Rs 15,807 crore as compared to Rs 11,687 crore in the same period of 202122.

Maharashtra, Uttar Pradesh and Tamil Nadu led the revenue collection, accounting for more than 40% of the total income generated. The surge in revenue is attributedlargely to revival of residential real estate sector since Covid. Property consultants indicated sales of housing units have shot up across metros and housing finance companies said demand for home loans in tier-2 and -3 cities and towns surged in past two quarters of this fiscal.

Only Bihar witnessed anegative growth of -73% to Rs 620 crore in the first half of 2022-23 compared to the same period of last fiscal.

Nikhil Gupta, chief economist, Motilal Oswal Financial Services, said, “The residential real estate sector has performed superbly over past 1824 months. Most of the incentives such as stamp duty reduction, lower interest rates or lower prices have disappeared over past six months. It is, thus, very likely that the sector may see some headwinds in coming quarters. ”

S Sridharan, chairman (urban development and housing), Credai-national, said, the country is witnessing an increase in demand for housing plots than before Covid times.