‘Levy stamp duty on short-term investment to boost revenue’

ST Correspondent
Friday, 8 June 2018

Vivek Velankar, founder of Sajag Nagrik Manch, said, “The State government has charged stamp duty from common people on all their transactions including rent agreements. But they are ignoring revenue sources of short-term investments which are carried out by banks and financial institutions. Clearing Corporation of India (CCI) is taking care of all bank and financial institutions transactions.  Daily Rs 1.2 crore transactions take places in the State through  CCI.” 

PUNE: Sajag Nagrik Manch has demanded levy of stamp duty on transactions aimed at short-term investment in the market to increase the revenue of the State government. 

The Department of Registration and Stamps (IGR) has admitted that the State is losing daily Rs 360 crore revenue from stamp duty. According to the NGO, the State Revenue Department and Finance Department are not taking the decision to start charging stamp duty on short-term investments of banks and financial institutions in the State. 

Sajag Nagrik Manch held a press conference on Thursday. Vivek Velankar, founder of the NGO said, “The State government has charged stamp duty from common people on all their transactions including rent agreements. But they are ignoring revenue sources of short-term investments which are carried out by banks and financial institutions. Clearing Corporation of India (CCI) is taking care of all bank and financial institutions transactions.  Daily Rs 1.2 crore transactions take places in the State through  CCI. The CCI is a private company and the State government should charge stamp duty on these private transactions.”

He said, “Shivprasad Chatre is former Chief Executive Officer (CEO) of Fixed Income and Money Market Derivative Association of India (FIMA). He is pursuing the issue for last three years. He pointed out the issue to IGR. On which, the IGR appointed a fact-finding committee, which admitted that the State government is losing revenue from stamp duty. Last year, the committee tabled a report to the State government. However, the Finance Department and Revenue Department are not taking the final decision about charging stamp duty on the transactions carried out through CCI in the market.” 

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