Mumbai, Jan 14 (PTI) Severely impacted by variousreforms like RERA, GST and demonetisation, the realty sectoris pinning its hopes on Budget 2018-19 for relief measureslike lower taxes and infrastructure status.
The year 2017 was an eventful one for the sector withmany structural policy reforms, which resulted in asignificant decline in home launches to 1,03,570 unitscompared to 1,75,822 in 2016.
Industry players are expecting rationalisation of theGST rates from the current 12 per cent to 6 per cent andbringing stamp duty under the ambit of GST.
"Also, industry status to the full real estate sectorwill help in creating surplus housing demand along withfinancing at lower rate for long-term projects.
"Rationalisation of GST by capping it at 6 per centwith input tax credit for the entire segment in real estatewill help revive and boost demand," Naredco National PresidentNiranjan Hiranandani said.
During the pre-GST era, service tax was around 4.5 percent and VAT 1 per cent -- resulting in total tax outgo of 5.5per cent.
"Further, stamp duty continues to remain in force evenafter implementation of GST and the rates vary from state tostate which increases the costs for the consumer.
"We hope that state governments abolish the same ormerge with the existing GST rates," House of HiranandaniChairman and MD Surendra Hiranandani said.
Tata Housing Managing Director and CEO Brotin Banerjeesaid, "We look forward to seeing the additional stamp duty andregistration on properties be reduced or merged with GST. Areduction of the taxes and add-on costs, inclusive ofbrokerage, on under-construction properties, will also easethe financial burden from a consumer perspective."Apart from GST, infrastructure status to the entiresector tops the list of their expectations from the budget.
"Real estate sector should be allotted infrastructurestatus, which will lead to construction funds being availableto the developer at much lower interest rates.
"This will eventually benefit EWS and LIG customers,as the developers would be in a position of making theprojects really affordable in its true sense," Poddar Housingand Development Managing Director Rohit Poddar said.
The industry is also expecting certain tax sops tohomebuyers like increasing the Rs 2 lakh tax deduction limitfor housing loans, and tax incentives for first-time homebuyers hiked from Rs 50,000 to Rs 2 lakh, Omkar Realtors ChiefFinancial Officer Manoj Paliwal and Transcon Triumph VicePresident, Sales and Marketing Sarojini Ahuja said.
Credai National President Jaxay Shah said thedevelopers' apex body expects deep concessions in income taxof at least Rs 5 lakh per annum for home buyers.
The industry is also expecting reforms in landacquisition.
"Some allocations towards accessing of loans foracquisition of land parcels would be needed to act as anaccelerant for growth of affordable housing," PuravankaraManaging Director Ashish Puravankara said.
Shree Krishna Group Managing Director Sundeep Jagasiasaid, "We expect that government will focus on the issue ofland costs being high. Lowering the costs for land acquisitionwill boost many private players. If the government does so,there will be many new launches and quick delivery of projectsby the private players." PTI PSK SM RSY ABMBAS.
This is unedited, unformatted feed from the Press Trust of India wire.