The revenue generation from stamps and registration fee looks to be slowly improving in Punjab, giving cash-strapped Akali Dal-BJP coalition government the thin hope of generating Rs 2,760 crore, the modest target it has set for this fiscal.
After the Value Added Tax (VAT) and state excise, the revenue from stamp and registration fee is an important component of the revenue receipts for the state government. In the previous financial year, the government was unable to achieve its financial targets. Still, Rs 16,750 crore was generated from VAT and Rs 4,000 crore from the state excise. The revenue receipts from stamps and registration contributed Rs 2,510 crore to the state coffers against the target of Rs 3,450 crore.
According to the state government data, since July this year, the revenue realised from stamp duty and registration fee is on the rise, compared to the corresponding period last year. For an example, in July and August, Rs 387 crore was realized from stamp and registration, compared to Rs 329 crore during the corresponding period in the last fiscal.
“Though the actual figures are yet to be prepared, indications are that in September and October also, the revenue growth from stamp and registration fee is better than that of the last year in these months,” a senior government official said.
In the first five months of this fiscal (April-August), Rs 1,088-crore stamp and registration fee was generated against the Rs 1,135-crore collected in these months last year.
What has, however, given a ray of hope to the government is the distinct pattern and gradual rise in stamp duty collection. For example, in April, the revenue growth was Rs 80 crore less than that of last year in the same month, while the gap in revenue receipts of stamp duty in May this year in comparison to last year was Rs 26 crore. “From June the revenue collected from stamp and registration fee is more than that of the last year, giving us reasons to hope that the real estate health has started improving in the state,” said an officer.
The Punjab government’s exchequer has been affected by the slowdown in the real estate sector as revenue generation from stamp duty and registration fee has been sluggish in the past two years.