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Himachal Pradesh Government Introduces Amendment Bill to Fix Sand and Gravel Rates and Impose Stamp Duty on Corporate Mergers
Illustration by Binay Sinha
The Himachal Pradesh government has passed an amendment bill in the Assembly to fix the rates of sand and gravel and impose stamp duty on corporate mergers and separation of partners. The bill also includes a 6% stamp duty on the lease amount from mining lease auctions. These measures are aimed at generating additional resources for the state, according to Revenue Minister Jagat Singh Negi.
Negi stated that industrial companies often merge with each other without the government receiving any benefits. This lack of stamp duty on such mergers leads to revenue losses for the government. To address this issue, the amendment bill proposes an 8% stamp duty on corporate mergers to boost government resources. Additionally, the stamp duty on mining leases has been increased from 5% to 6%.
During the discussion on the bill, opposition leaders raised objections. BJP leader Randhir Sharma expressed concerns that stamping the mining lease would directly impact the cost of sand and gravel, making it more expensive. Leader of Opposition Jairam Thakur criticized the government for imposing conditions that could deter industrialists from investing in the state. Thakur questioned the chief minister’s ability to make Himachal Pradesh resourceful within four years, especially considering the higher electricity costs compared to other states.
Bikram Singh of the BJP criticized the government for implementing policies that discourage investment, stating that no one would invest under such conditions. MLA Trilok Jamwal raised concerns about the stamp duty on mergers involving sick units, highlighting that the government usually provides facilities to such units before the merger. In response, Negi clarified that stamp duty can be paid by the capable company with which the sick unit merges.
Despite objections, the amendment bill was passed by voice vote on the last day of the winter session. The government hopes that these measures will help raise additional resources for the state.
Updated: Dec 23, 2023 | 8:09 PM IST,
Himachal Pradesh, a state in India, has recently announced the implementation of an 8% stamp duty on corporate mergers and separations. The decision was made by the state government to boost revenue generation and increase the state’s economy. This move is expected to impact companies operating within the state, potentially influencing their decisions regarding mergers and separations. The imposition of stamp duty is aimed at generating additional funds for development projects and promoting overall growth in Himachal Pradesh.
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