Budget 2015: “Progressive budget with long term vision”- CREDAI
Manish Agarwal, Managing Director, Satya Group & Secretary, CREDAI NCR
“It is a progressive budget with nuanced, comprehensive and stabilized long term vision. The measures, such as reduction in corporate tax to 25% over 4 years, abolishing of wealth tax and government’s committed to housing for all and make in India will aid realty sector substantially. With inflation target pegged at less than 6 per cent and individual savings set to increase through direct and indirect exemptions, the housing sector is sure to gain from it.
The incremental social sector spending will translate into more spending. The commitment of government for investment in Infrastructure sector, particularly for semi-urban and rural areas will bode well in long term in filling the gap between urban and rural divide. While the target of GST introduction in 2016 is a positive sign, the increase in service tax will have negative. However Govt could have looked at increasing incentives on the interest paid on housing loan from the current levels. Last yet most important, government’s commitment to “Housing for all by 2022” is quite visible and with a figure of 6 lakh units defined, it looks all the more clear. The tax pass through to REIT sponsor is a healthy sign for commercial segment.”
Suresh Hari, Secretary, CREDAI Bengaluru
The Budget is exciting and needs to be studied in depth. But overall there is a clear approach on infrastructure and growth. As far as the realty sector is concerned the following announcement encourages and helps the sector:
• Skill Mission enhancement,- which will bring in enhanced skilled work force.
• Regulatory reform for infrastructure,
• Single window clearance-
• Increase in allocation of infrastructure fund,
• Road outlay, Rural & Urban housing,
• Rationalized Capital Gains Regime For REITs/InvITs
• Wealth tax abolition-
• Corporate tax reduction in a phased manner
• Tightened Reporting Of Cash Transactions
• Reduced customs duty on 22 items
Some of the issues that are not addressed or not clear are:
• GST roll out. The delay will put certain impediment on individual state taxes, since there are challenges at present.
• Clear policy on Smart Cities.
• Excise duty increase, which will increase cost of inputs.
• Increase of service tax rate to 14% from 12.36%- The sector is looking for relief from this tax.
There seems to be a good approach to the overall economy. The Real estate sector benefits from all budget related activity and 2015 looks very promising.
Manoj Gaur, MD, Gaursons India Ltd & President CREDAI Western UP
“A very controlled budget which appeared to be cautious step by the government to not make big announcements. As of now real estate sector will not benefit at all from it and the demands of the sector are still unmet. What we fear is the probable increase in raw material cost which would not be good for the costing of housing. General people are already reeling under the high cost of homes, which are not in any way control of real estate developers, and this budget is a disappointment for people who were expecting rationalisation in prices of homes.”
