Budget Wish List: Naredco lists steps to boost realty biz

Days ahead of Budget 2018-19, National Real Estate Development Council (Naredco) recently listed steps that the government should strive to increase the supply of residential properties and the purchasing power of home buyers to achieve the target of Housing for All by 2022. It submitted the pre-budget memorandum to the FM with various suggestions and recommendations. The body has carefully spelt out its demands and suggestions pertaining to the sector for the upcoming budget. It not only want the sector to grow but also want the home buyers to benefit and this should happen along with an increase in government revenue from the sector and suggestions, if accepted, will be a win-win situation for all the stakeholders, said Naredco Chairman Rajeev Talwar.

As a matter of fact, industry status is something which is long overdue to the sector. The government should help developers in getting better access to funds and also incentivize home buyers to create demand for the sector, which is facing a lot of challenges. Naredco has been demanding to bring house construction in 12% GST rate from 18% now with 50% abatement for land from the prevailing 33%. The step will bring tax rate at the level of around 6 percent of the property cost. Naredco Vice-Chairman Parveen Jain insisted that the government should make regulatory system more realistic and in sync with genuine business expectations. Also, the sector which is facing challenges needs government’s help to tide over the paucity of funds and flexibility in use of the funds and the industry hopes the Budget will address our concerns in this regard, he insisted.

Published: 19 January 2018