Evidence indicates that the current high duty rates, coupled with weak tax administration, lead to widespread evasion of the tax through underdeclaration. This underdeclaration of property values directly affects collection of other taxes, among them, property taxes and capital gains tax. Moreover, it indirectly affects the collection of all taxes through the impact of underdeclaration on the circulation of black money. Simulations indicate that revenues lost due to a lowering of stamp duty rates closer to international levels are quite likely to be recovered in higher collections of other taxes. However, these taxes would at least in part be collected by other levels of government. So reform could be made a more viable option through appropriately designed intergovernmental transfers.
The authors review the options for reform of stamp duties on immovable property transfers collected by Indian state governments. After briefly reviewing some of the many administrative difficulties experienced with the tax, they turn to an examination of its economic impacts. A review of stamp duties internationally indicates that Indian rates are exceptionally high, at rates often above 10 percent. Most countries' rates are less than 5 percent, including a number of low and middle-income developing countries. With these high rates, the authors find that while the tax has become the third largest revenue source for many Indian states, it imposes high compliance costs on taxpayers, has been subject to a good deal of evasion and fraud, and the distortionary impacts appear to be large, reducing the responsiveness of real estate markets in Indian cities by discouraging transactions essential to the efficient growth of cities. The authors then study the revenue implications of lowering stamp duty rates, which need to be understood if reform is to be viable. Evidence indicates that the current high duty rates, coupled with weak tax administration, lead to widespread evasion of the tax through under-declaration. This under-declaration of property values directly affects collection of other taxes, among them, property taxes and capital gains tax. Moreover, it indirectly affects the collection of all taxes through the impact of under-declaration on the circulation of black money. Simulations indicate that revenues lost due to a lowering of stamp duty rates closer to international levels are quite likely to be recovered in higher collections of other taxes. However, these taxes would at least in part be collected by other levels of government. So reform could be made a more viable option through appropriately designed intergovernmental transfers.
Author: Organisation for Economic Co-operation and Development. Committee on Fiscal Affairs
Publisher: Paris, France : Organisation for Economic Co-operation and Development ; [Washington, D.C. : Sales agents, OECD Publications and Information Center]
Survey of taxes on immovable property. Reviews the major policy issues raised in the taxation of land and buildings and compares the main provision of property tax systems in 15 OECD Member countries.
'Impressive! . . . The authors have given us a searching account of the crisis and provided some memorable portraits of officials in America impaled on the dilemma of having to enforce a measure which they themselves opposed.'--New York Times 'A brilliant contribution to the colonial field. Combining great industry, astute scholarship, and a vivid style, the authors have sought 'to recreate two years of American history.' They have succeeded admirably.'--William and Mary Quarterly 'Required reading for anyone interested in those eventful years preceding the American Revolution.'--Political Science Quarterly The Stamp Act, the first direct tax on the American colonies, provoked an immediate and violent response. The Stamp Act Crisis, originally published by UNC Press in 1953, identifies the issues that caused the confrontation and explores the ways in which the conflict was a prelude to the American Revolution.
When the state and business interact effectively they can promote a more efficient allocation of scarce resources, appropriate industrial policy and a more effective and prioritised removal of key obstacles to growth, than when the two sides fail to co-operate or engage in harmful collusion. This book, based on original empirical research undertaken in Africa and India, addresses what constitutes the effectiveness of state-business relations, what explains their formation and evolution over time and whether effective state-business relations matter for economic performance. Analysing the effects of state-business relations on economic performance at both the macro and micro levels, the book concludes that where effective state-business relations are established – either through formal or informal institutional patterns and relationships – the growth effects are generally positive. Establishing, sustaining and renewing effective state-business relations are political processes. The better organized the business community and the government are for purposes of such relations, the more effective state-business relations will be in negotiating growth enhancing policies. The book is of interest to researchers in the fields of development studies, management, economics and political science.
Signification changes have been proposed in India's Stamp Duty Laws in the Draft Indian Stamp Bill, 2023 (Bill). Below is a breakdown of the major proposals and amendments in the Bill: ‣ Introduction of Electronic Stamps – Clause 2(18) introduces electronic stamps to facilitate digital transactions, marking a significant step towards modernizing the system ‣ Defining 'India' Post Article 370 Abrogation – The Bill, under Clause 2(19), redefines the geographical scope of 'India' in light of the abrogation of Article 370 ‣ Inclusion of Electronic Records in 'Instrument' Definition – Clause 2(20) expands the definition of 'Instrument' to include electronic records, reflecting the growing digitalization of documents ‣ Expansion of Lease Definition – The definition of 'lease' has been proposed to be expanded to include various agreements, such as any agreement of lease, any mining license or mining lease, and any leave and license agreement ‣ Revised Criteria for 'Market Value' Determination – Clause 2(25) revises the criteria to determine the 'Market Value' of properties, aiming to ensure fair valuation practices ‣ Special Economic Zones Exemptions – Clause 3 provides specific exemptions for transactions within Special Economic Zones ‣ Extension of Section 4’s applicability to Gift and Lease Transactions – Clause 4 extends Section 4's applicability to include gift and lease transactions, broadening the scope of stamp duty. ‣ Increased Stamp Duty for Duplicate Instruments – Clause 6 addresses the stamp duty implications for duplicate instruments, increasing the duty to discourage unnecessary duplication ‣ Clarification on Stamp Duty for Gift Deeds – Clause 39 provides clarity on the stamp duty liability associated with Gift Deeds ‣ Higher Threshold for Revenue-Stamped Receipts – The monetary threshold for issuing revenue-stamped receipts is raised under Clause 40 ‣ Increased Adjudication Application Fees – Clause 41 revises the application fees for adjudication ‣ Enhanced Power for the Collector – The limit for the Collector's power is raised in Clause 50, empowering them to handle higher-value transactions ‣ Raised Limit for Self-Stamping Bills and Notes – Clause 57 increases the limit for self-stamping of bills and notes ‣ Addressing Under-Valuation in Various Instruments – Clause 57A focuses on tackling the issue of under-valuation in different instruments to ensure fair tax collection ‣ Introduction of General Penalty Provision – Clause 72 introduces a general penalty provision to deal with violations effectively ‣ Increased Price for Selling Cheap Translations – Clause 81 raises the price for selling cheap translations, ensuring quality and accuracy in legal documents ‣ Omission of Redundant Provisions – The Bill also proposes the omission of outdated sections (Section 54A, 54B, 77A, 77B, 70, 71, 72), streamlining the legislation and removing obsolete clauses
