In Himachal Pradesh, business mergers and separations would be subject to an 8% stamp duty: Minister

 In Himachal Pradesh, business mergers and separations would be subject to an 8% stamp duty: Minister

In Himachal Pradesh, business mergers and separations would be subject to an 8% stamp duty: Minister

Negi said during the bill's debate that when industrial businesses combine, the government receives no benefit from the merger.

Earlier, opposition leaders voiced concerns during the bill's debate.

The Himachal Pradesh government will set the prices for sand and gravel in accordance with an amendment law approved by the Assembly. Additionally, it will impose an 8 percent stamp duty on business mergers and partner separations. When mining leases are auctioned off, the government will also get 6% stamp duty on the lease value. According to state revenue minister Jagat Singh Negi, who on Friday tabled the Indian Stamp (Himachal Pradesh Second Amendment) Bill 2023 in the House, these actions are intended to mobilize resources.

On the last day of the winter session, the amendment bill was approved by voice vote after debate. Negi said during the bill's debate that when industrial businesses combine, the government receives no benefit from the merger. These are not subject to stamp duty, which costs the government money. In order to earn funds for the government, the government is putting in place a measure requiring these enterprises to pay an 8 percent stamp. In a similar vein, he said that mining leases now have a five percent stamp, up one percent.

Earlier, opposition leaders voiced concerns during the bill's debate. Sand and gravel prices would immediately increase with the government's approval of the mining license, according to BJP leader Randhir Sharma. Opposition Leader Jairam Thakur said that although the government is attempting to court Dubai's entrepreneurs, it is also placing restrictions on them. He questioned the Chief Minister's claim that Himachal Pradesh will become resource-rich in four years, questioning why businessmen would want to visit the state when even power costs more than in other states.

The government is attempting to eradicate the egg-laying hen, according to Bikram Singh (BJP). No one will invest in such a scenario, he said. Additionally, MLA Trilok Jamwal said, "The government initially offers services to a sick unit if it is combined. Who would cover the stamp duty during the merger in such a scenario?" Negi responded to this by saying that a sick unit is always combined with a capable business, and that business is able to cover the stamp duty. With the support of the majority of the governing party, this measure was approved in the House after debate.