India may offer budget SOPS to Realty sector |
The Narendra Modi government`s target of “Housing for All” by 2022 has been going on strongly but there are some hindrances in its progress. The major issues faced by the housing sector include liquidity, high GST rates on cement and other construction material, high stamp duty and other taxes levied while purchasing a house. The sector is now eyeing the upcoming financial budget to resolve these issues. The Union Budget needs to address the housing sector`s issues, as housing finance companies are facing challenging times. The foremost priority should be to address the liquidity scenario of the Housing Finance Companies and Non-Banking Financial Companies, particularly the smaller NBFCs and HFCs which are largely dependent on the banking system. Many housing sector experts feel interest rate cuts have not worked and this needs to be addressed. GST rate for cement and other construction material needs to be brought down and benefit passed on to home buyers for bringing down the cost of the affordable housing schemes. As the revival of real-estate is a must for employment, it will be very important to look at what the government proposes in the budget.
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