NEW DELHI (INDIA): The Wadhwa Group Managing Director Navin Makhija said that the Union Budget 2017-18 has struck the right chord keeping the long-term objectives in mind, and we believe that it will bring positive improvements and lead to a progressive growth in the Real Estate Sector, particularly affordable housing.
“The government has successfully managed to address the housing needs of millions by increasing the allocated amount to the affordable housing to Rs 23,000 Cr, and we look forward to capitalizing on this. This move will certainly boost the sector and make affordable housing a reality. Moreover, the decision by the Finance Minister to grant Infrastructure status to affordable housing will incentivize developers to construct more budget homes,” he said.
“With the new status, developers stand to receive tax benefits, subsidies and gain access to institutional funding and land specially released for affordable housing in prime locations. This move will result in the increased supply of homes in this category. Developers will also be able to secure faster clearances and funds for expansion plans and various projects,” added Makhija.
“The infra status grant is a win-win situation, for both, buyers and developers. Affordable Housing now becomes a priority lending sector for banks resulting in easier and lower funding for home buyers. We expect that there will be faster project execution and stringent payment methods will increase transparency and bring much-needed credibility to the sector,” he added.
Affordable Housing will be given Infrastructure Status
The Union Minister for Finance and Corporate Affairs, Arun Jaitley while presenting the General Budget 2017-18 in Parliament said that affordable housing will now be given infrastructure status, which will enable these projects to avail the associated benefits.
The National Housing Bank (NHB) will refinance individual housing loans of about Rs. 20,000 crore in 2017-18. Thanks to the surplus liquidity created by demonetisation, the Banks have already started reducing their lending rates, including those for housing. The Finance Minister Shri Jaitley in his Budget Speech said that in addition, interest subvention for housing loans has also been announced by the Prime Minister Narendra Modi.
GST Council has finalised its recommendations on almost all the issues based on consensus
The Union Minister for Finance and Corporate Affairs,Jaitley said that the GST Council has finalised its recommendations on almost all the issues based on consensus after spirited debate and discussions.
The Finance Minister said that the Government on its part has promptly given effect to various provisions of the Constitutional Amendment Act, including constitution of the GST Council.
The GST Council held 9 meetings to discuss various issues relating to GST, including broad contours of the GST rate structure, threshold exemption and parameters for composition scheme, details for compensation to States due to implementation of GST, examination of draft model GST law, draft IGST law and the Compensation Law and administrative mechanism for GST.
He said the preparation of IT system for GST is also on schedule.
The Finance Minister Jaitley in his Budget Speech further said that the extensive reach-out efforts to trade and industry for GST will start from 1st April, 2017 to make them aware of the new taxation system.
He said that since the enactment of the Constitution (One Hundred and First Amendment) Act, 2016, there has been substantial progress on preparatory work towards ushering in GST which is by far the biggest tax reform since Independence.
“Several teams of officers both from the States and Central Board of Excise and Customs (CBEC)have been working to give finishing touch to the Model GST law, rules and other details, he added.
Jaitley said that the Government, through the Central Board of Excise & Customs (CBEC) shall continue to strive to achieve the goal of implementation of GST as per schedule without compromising the spirit of co-operative federalism.
He added that the implementation of GST is likely to bring more taxes both to Central and State Governments because of widening of tax net.
The Finance Minister Jaitley stated that not many changes have been proposed in current regime of Excise & Service Tax in the Budget proposals since they are to be replaced by GST soon.