By Accommodation Times Bureau
By Ashok Chhajer, CMD, Arihant Superstructures Ltd
The foremost expectation is demand for Industry status to real estate sector which can ease the Industrial Undertaking for purpose of availing long term and short term finances as available to other industries.
The EWS and LIG projects constructed and handed over to the govt. to be distributed among the weaker section must be considered under the category of infrastructure projects and the developer must be granted the direct taxes benefits of 80 -I B for all such as it is the utmost requirement of the country to provide houses to the weaker sections.
Mr. Chhajer also emphasise that being real estate sector as the construction sector is the second-largest employer. Development of this sector has a direct impact on the support industries like steel and cement effect in the market.
Need for a real estate regulator is also felt to safeguard justness and transparency in the industry and protect consumer interests.
The government should bring some tax incentives structures. The real-estate today is defined by different department as different revenue sources so it is state government which takes stamp duty and registration which was existing in long years and then it was added up with VAT tax which is again added up with service tax so over and above there is a lot of burden of taxation component which amounts to almost 35 % of the sale price of an average flat and this cost is heavily burdened ,which is why there is stagnancy in the market and this thing is leading to slow movement in the industry. Justifying would be better taken all the taxation is taken on one platform. The housing loan interest has also increased substantially in the last 2 years which has affected both serious home buyers as well as developers due to slow sales. The prices have become unaffordable for common people, said Mr. Chhajer
On Technology front for Affordable Housing new construction technology is required such as aluminum formwork or precast technology& fly Ash bricks &Blocks. Currently most of these technologies are being imported and have high taxes levied. The customs duty/ taxes paid for importing these technologies varies in the range of 20-25%. This discourages the use of these technologies and hence development of affordable housing which is the need of the hour is to reduce.
What Government can bring up in today’s times is a free trade in terms of construction, equipment’s and technology can be carried out all over the country to help in speeding up the production. Thus some custom duties for imports of this technology should be reduced so that people can freely bring in this technology for its effective use as currently there are custom duties that are imposed while bringing in any plant and machinery.
If the Government cannot bring in a direct benefit in terms of custom duties imposed on the imports of plant and machinery at least they can consider some or other ways & means to support the environmental friendly industries which cater to construction like for e.g. fly-ash industry.
Gentlemen also appeal the govt. In this union budget 2012 that REITs are a significant source of capital and liquidity for real estate industry globally. Absence of REITs in India has restricted retail investor participation and limited capital flows to the sector hence it should be enact in legislation.
By Accommodation Times Bureau