Buying property set to cost more in Himachal

Amid resistance from the Opposition, the Himachal Pradesh Assembly approved the bill to hike stamp duty from the current 4%-6% to 8% on property transactions over ₹50 lakh. It was earlier set at 4% for women and 6% for men. With an increase in the registration fee, it will now be costlier to own properties in the state.

Bharatiya Janata Party (BJP), the main Opposition party in the state, staged a walkout from the Assembly on Saturday, opposing the government’s decision to increase stamp duty.

The government has, however, introduced a relief measure for women, who will have to pay 4% stamp duty on property registrations up to ₹80 lakh. Earlier, this limit was set at ₹50 lakh. Initially, Opposition had recommended amendments to the bill, prompting the government to raise the property registration limit for women.

Revenue minister Jagat Singh Negi presented the Indian Stamp Himachal Pradesh Amendment Bill 2023 in the House on Friday. The opposition voiced strong objections, characterising the move as an imposition of excessive financial burden on the public. Chief minister Shukvinder Singh Sukhu proposed certain amendments, leading to an adjournment of the bill’s discussion until after lunch. Tensions ran high during the subsequent debate on passing the bill, leading to an uproar by the opposition. The Opposition leaders later returned to the House.

Negi defended the stamp duty increase by citing the state’s debt of ₹75,000 crore and the unfavourable economic climate. He emphasised the need for the government to seek additional revenue sources, expressing concerns about overreliance on borrowing. The state government justified its fee structure by aligning it with that of neighbouring Haryana.

Sukhu highlighted cases over the last ten months wherein land transactions occurred based on power of attorney. He stressed the necessity of curbing such practices and reiterated the government’s commitment to empowering women. He attributed the Opposition’s walk out as their failure to support women’s rights, characterizing the BJP as anti-women.

The fee amount of general power of attorney has been increased from ₹100 to ₹1,000, from ₹150 to ₹1,500 and from ₹200 to ₹2,000. The government rejected the opposition’s argument that the ten-fold increase is not appropriate.

During the bill’s deliberation, BJP MLA Randhir Sharma voiced concerns, suggesting that it would impose an additional financial burden on the state’s residents, particularly the less affluent.

MLA Trilok Jamwal argued that the increase was unwarranted, given the limited landholdings of many residents in the state. He warned that this move would disproportionately affect the less privileged.

Opposition leader Jai Ram Thakur proposed that an increase up to 5% could be considered reasonable, emphasising that the current hike was excessive and would negatively impact the public’s financial well-being.