Andhra Pradesh Chief Minister Chandrababu Naidu has decided to bite the bullet of tax hikes to support the cash-starved exchequer. According to the new rates, stamp duty on all transactions will be increased to 5% from the current 4% and land registration fee, which is pegged at 0.5% of the market value is now 1%.
All deeds executed between family members will attract a 2% fee as against the present 1%. Other deeds, including settlement, transfer and mortgage will be charged at 4% from the existing 2%. This move of the government is expected to bring in 1500 Crore Rupees of extra revenue for the state.
The Registration and Stamp duties were revised last in November 2013 by the then Kiran Reddy government. It was then the government reduced the fee in some categories and increasing it in other. With lot of activity happening in the state after Chandrababu came to power and the new capital is announced, the land-related activity doubled between June-October 2014 compared to the previous year, so the government is depending on the boom to pool in some cash to fund the deficit budget state.
