Reduce stamp duty to 3%: Panel

The committee appointed by the finance ministry to turn Mumbai into an international financial hub has asked the state government to reduce stamp duty further, in order to garner additional revenue for Mumbai's infrastructure project.

Turning Mumbai into an international financial hub is Finance Minister P Chidambarm's pet project. Mumbai has the advantage of being located at an equal distance between two major financial centers Hong Kong and London and also has a strong institutional and trained human capital base.

The committee, headed by the international banker Persy Mistry, met Chief Minister Vilasrao Deshmukh and other senior government officials.

The committee, which is finalising its recommendations, wanted to meet the state government officials before it gives final touches to its recommendations.

They opined that stamp duty could be reduced from 5 per cent to 3 per cent to bring the city on par with other major cities in the country.

The committee also asked the state government to ensure better delivery of municipal services and bring it on par with the standards set by municipal transport service BEST.

The committee appreciated various initiatives taken by the state government to improve the city's infrastructure.