After reducing stamp duty on registration of property in urban areas, the Punjab government on Wednesday slashed circle rates in both urban and rural segments to revive and boost the state’s real estate sector.
“While circle/collector rates in urban areas have been cut by 5 per cent, those in rural areas have been lowered by 10 per cent,” an official spokesperson said after a high-level meeting chaired by Chief Minister Amarinder Singh.
The reduced rates would be applicable only to basic land rates and not to rates for super structures, according to a notification issued by Karan Bir Singh Sidhu, Special Chief Secretary and Financial Commissioner, Revenue.
All District Collectors have been issued necessary directions on the revision of circle/collector rates.
The Punjab cabinet had earlier decided to reduce stamp duty on registration of property in urban areas from 9 per cent to 6 per cent till March 31, 2018, by removing the 3 per cent additional stamp duty chargeable as Social Security Fund.
The cabinet had also decided to grant exemption from 10 per cent increase in Change of Land Use, External Development Charges and License Fee/Permission Fee from April 1, 2017, to March 31, 2020, for real estate projects.