Gandhinagar: Finance Minister Kanubhai Desai while presenting the Budget for the financial year 2025-26, projected an overall surplus of ₹859 crore after tax proposals. He announced “reforms” in stamp duty and motor vehicle tax  “to promote ease of living and doing business in the state”. Desai estimated overall surplus for the year 2025-26 will be ₹1007 crore.

The finance minister said that a bill for rationalising the provisions of ‘The Gujarat Stamp Act-1958’ will be introduced by the Government. Some of the proposed reforms he shared are –

• In respect of ancestral property, on execution of release deed by the legal heirs of pre-deceased daughters, in place of the existing stamp duty of 4.90%, only a stamp duty of Rs. 200 will be levied, which is the same as payable by legal heirs of pre-deceased sons.
• As per the provisions of the Gujarat Stamp Act, 1958, at present a maximum stamp duty of Rs. 25,000/- at the rate of 0.25% is levied on ‘mortgage deed’ for loan amounts of up to Rs.1 crore, which will be reduced to a maximum of Rs. 5,000. Home loan holders and small entrepreneurs will get financial benefit and the process will be made easy.
• As per the existing provision, 1% stamp duty has to be paid on an amount of average annual rent on lease deeds of less than one year. In place of this, a stamp duty of Rs. 500 will be levied for residential properties and Rs. 1000 for commercial properties. For the purpose of lease deed, for other periods also stamp duty rates will be simplified.

Further, a facility of e-registration will be provided for registration of mortgage deeds, reconveyance of mortgage deeds, lease deeds etc. This will avoid the requirement to visit Sub Registrar offices, thereby saving the time and energy of citizens and small traders.

Desai also made announcement regarding the Motor Vehicle Tax. He said – To bring simplification in current taxation, a uniform rate of tax i.e. 6% instead of prevailing rates of 8% and 12% levied as per passenger carrying capacity for Maxi category will be applicable. This will accelerate the tourism sector of the state.

He addd that a decision has been taken to give rebate of up to 5% on motor vehicle tax on fully battery operated electric vehicles which are presently taxed up to 6% lumpsum motor vehicle tax so that resultant effective tax rate is 1%.

No fresh announcement was made regarding GST and Electricity Duty. DeshGujarat