The Karnataka government is considering a 1% hike in stamp duty amid a significant revenue shortfall from property registrations.

If implemented, the total cost of property registration for buyers could rise from the current 6.6% to 7.6%. Presently, buyers pay a 5% stamp duty on the government-fixed guidance value, along with a 1% registration charge, 0.5% cess, and 0.1% surcharge. The move follows a steep 35% shortfall in first-quarter collections, with only ₹4,556 crore raised against a ₹7,000 crore target. The state had set a revised revenue target of ₹24,000 crore for FY2024-25 but closed last year at ₹22,500 crore. For FY2025-26, the target is ₹28,000 crore. The Chief Minister has directed relevant departments to formulate measures to bridge the gap. Concerns are growing that the revenue dip reflects a broader slowdown in the real estate sector, and a duty hike may further impact buyer sentiment.