Budget 2015-16: Eyes set on passage of GST

Mahipal Singh Raghav, CMD, MMR Group

To begin with, Industry Status has been a request that’s been put forward and ignored many times now. It’s a wonder how a sector that generates so much attention and revenue is still not recognized as an industry. This will give builders access to funds at reduced interest rates and reduced collateral thereby making housing more affordable. Also, currently, home buyers need to pay service tax, VAT as well as stamp duty when purchasing flats.

The Government should ensure the quick passage of Goods and Service Tax which will replace numerous taxes and help the consumers. Finally, setting up a Real Estate Governing body is much required. There is a big need for an apex body which will address the concerns and look into issues from this sector.

P Sahel, Vice Chairman, Lotus Greens Developers

India Inc. is eagerly awaiting the forthcoming Union Budget 2015-16. The positive moves taken by the government last year like the principal approval to REITS by SEBI would give cash strapped investors, High Net Worth individuals and other investors’ easy access to funds and create new avenues for real estate developers. Going forward as part of the developer’s community, we expect attractive tax norms for REITs and other such investment trusts.

It will be appreciated if the interest rates for home loans are reduced which will give an overall boost to the sector and help in bridging the gap between the demand and supply. Further, if the government initiates steps towards providing special benefits to green and sustainable developments, it will have a profound positive impact as it is the future of real estate industry. This coupled with single window clearance system will help in reducing time for project completion, thereby bringing down the overall cost of construction.

Kushagr Ansal, Director, Ansal Housing

This time we are expecting the RBI to start cutting the interest rates possibly after the budget in first quarter which shall give them extra confidence on handling inflation expectations and stability in currency environment. There is a greater probability of start of rate cut cycle by RBI in the very first quarter this year which will definitely boost a number of sectors and progress corporate earnings from a medium to long term perspective.

Moreover, government is expected to pay attention on the implementation of key reforms like GST and other bills that would ignite the investment cycle that will work in the favour as well.