Gujarat slashes stamp duty on mortgage deeds, tax on EVs in Rs 3.7 lakh cr budget for FY26

Gandhinagar, Feb 20 (PTI) The Gujarat government presented a Rs 3.70 lakh crore budget for fiscal 2025-26 in the Assembly on Thursday, offering a tax relief of Rs 148 crore by reducing the stamp duty on mortgage deeds and the motor vehicle tax on Electric Vehicles (EVs).

Finance Minister Kanubhai Desai did not propose any new tax in the budget which had an estimated surplus of Rs 859 crore.

Desai informed that the budget outlay of Rs 3,70,250 crore for the next fiscal indicated an increase of Rs 37,785 crore, or 11.3 per cent, from the ongoing financial year.

Among other highlights, the government proposed to set up a `Gujarat Reforms Commission' to bring in necessary changes in administrative procedures and integrate new technologies.

While nearly Rs 60,000 crore has been allocated for the education sector, a Rs 23,365 crore outlay has been proposed for the health and family welfare department, he said.

Reduction of stamp duty on mortgage deeds, and that of vehicle tax on EVs would amount to tax relief of Rs 148 crore, the minister said.

In respect of ancestral property, on execution of release deed by legal heirs of pre-deceased daughters, in place of existing stamp duty of 4.90 per cent, only Rs 200 will be levied, Desai informed the House.

At present, a maximum stamp duty of Rs 25,000 at 0.25 per cent is levied on mortgage deeds for loan amounts of up to Rs 1 crore, which will be reduced to a maximum of Rs 5,000, giving financial benefit to home loan holders and small entrepreneurs, said the finance minister.

The motor vehicle tax on fully battery operated EVs in Gujarat is 6 per cent. Now, the budget has proposed a rebate of 5 per cent, which will bring the tax rate to just 1 per cent, said Desai.

To boost tourism, the government has decided to collect a uniform 6 per cent motor vehicle tax, instead of prevailing 8 per cent and 12 per cent, depending on the passenger carrying capacity, for the Maxi category of vehicles, he said.

Addressing a press meet after the budget, Economic Affairs Secretary Arti Kanwar emphasised the government is focusing on "quality expenditure", which means more outlay for capital expenditure.

While revenue expenditure, such as salaries and pensions, grew by only 7.7 per cent in comparison to the last fiscal, capital expenditure grew by nearly 23 per cent, which comes at Rs 1,34,206 crore, said Kanwar.

"During the last three years, capital expenditure was more than 30 per cent of the budget outlay. This expenditure is important because it helps in creating assets and infrastructure for people, which in turn create jobs. In this year (2025-26), we have allocated 36.6 per cent of the outlay for capital expenditure," the senior bureaucrat noted.

Finance minister Desai announced a host of new schemes and projects and said the budget was based on five pillars - social security, human resource development, infrastructure development, green growth and development of economic activities.

He said the budget aims to push for inclusive growth and sustainable development with focus on 'GYAN' - Garib (poor), Yuva (youth), Annadata (farmers), and Nari Shakti (women power).

Desai announced the BJP government has prepared a roadmap for 'Viksit Gujarat 2047' to realize PM Narendra Modi's vision of 'Viksit Bharat' by 2047.

"To transform this vision into reality, we are committed to formulating and implementing well-planned projects and welfare schemes. For this, I propose to create a Rs 50,000 crore Viksit Gujarat Fund over the next five years. I propose an allocation of Rs 5,000 crore in this budget," he said.

To transform Gujarat into a prosperous state, 6 growth hubs, including Surat Economic Region, will be developed. In addition to Surat, regional economic plans for Ahmedabad, Vadodara, Rajkot, Coastal Saurashtra region and Kutch are being prepared to facilitate a comprehensive economic development, announced Desai.

"To realize the potential of the services sector, I propose to set up a new Commissionerate of Services. A master plan aimed at optimizing water storage of rivers and maximizing groundwater recharge will be developed based on techno-feasibility study across 185 river basins," he said.

Under the 'Garvi Gujarat High Speed Corridor' project, 12 new high-speed corridors of 1,367 kilometres will be developed, according to the budget proposals.

Two greenfield expressways will be developed in Gujarat - the 'Namo Shakti Expressway' connecting Banaskantha to Saurashtra's coastal areas, and the 'Somnath-Dwarka Expressway' from Ahmedabad to Rajkot, with an extension to pilgrimage centres including Dwarka, Somnath and Porbandar.

Desai said the expansion of airports at Surat, Vadodara, Bhavnagar and Porbandar will be undertaken, while a greenfield aerodrome will come up at Dahod.

A provision of Rs 175 crore has been made to establish a Demonstrative Artificial Intelligence Lab at LD Engineering College, Ahmedabad and AI Labs at 6 other government institutes. The government plans to establish four regional centres in line with i-Hub in Ahmedabad, he said.

Desai, who also handles the energy department, said Rs 4 crore has been allocated for a "Green Feeders Project", aimed at supplying electricity for agriculture through clean energy sources.

He declared 2025 as the "Year of Urban Development" and proposed an outlay of Rs 30,325 crore for the sector.

Desai said a provision of Rs 100 has been made for establishing a Gujarat Institute of Technology to prepare students for emerging sectors like green energy, semiconductors and aerospace. PTI PJT PD GK BNM KRK RSY

Source: PTI