Budget 2018 misses imp amendments in Real Estate Sector: Realty Players

real-estateBy Accommodation Times Bureau

MUMBAI

The Union Minister for Finance and Corporate Affairs, Arun Jaitley, announced Rs.14.34 lakh crore to be spent in 2018-19 for the creation of livelihood and infrastructure in rural areas which is the highest amount to be invested in 2018-19.

“As my proposals outlined indicate, the focus of the Government next year will be on providing maximum livelihood opportunities in the rural areas by spending more on livelihood, agriculture and allied activities and construction of rural infrastructure”, the Minister said.

The government will also establish a dedicated Affordable Housing Fund (AHF) in National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorized by the Government of India, the release stated.

Commenting on the important issues Kishore Bhatija, Managing Director, Real Estate Development- K Raheja Corp said, “The Real Estate industry was seeking some very important amendments like the industry status, streamlining of taxation norms for REITs, rationalisation of GST, and extension of tax SOPs for SEZ units, which we hope will be addressed soon. Having said that, the progressive nature of the budget has paved way for economic growth, and we look forward to a good year with continuous improvements for the realty sector.”

Although, the year 2018 sees a populist budget presentation by our Honourable Finance Minister,  Arun Jaitley catering to the needs of the common man and the economy. The budget has provided financial allocations in maintaining the Governments larger vision of ‘Building the Nation’ and ‘Housing for All’. The budget’s capital expenditure focussing on key sectors such as agriculture, infrastructure and housing, amalgamate to provide necessary momentum and thrust to the economy, he added.

Arun Jaitley also proposed while announcing the budget in parliament that no adjustment shall be made in a case where the circle rate value does not exceed 5% of the consideration.

According to Sarjan Shah, MD, Group Satellite said, “Disappointing budget from the perspective of private sector involvement in creating mass housing stock that will make homeownership a reality for all Indians. The budget has unfortunately ignored the stressed and vilified real estate sector that is in desperate need of Government support through specifically targeted tax breaks that help make building affordable homes in India viable.”

The budget more emphasized on employment, agriculture, Infrastructure, health and education, farmers, etc.

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