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Feb 23, 2013, 03.15 PM IST | Source: Moneycontrol.com

Budget 2013-14: Housing finance should be considered as priority lending

The property industry expects that affordable housing should be considered for priority lending. Banks needs to offer concessional rates to make property buying affordable for people.

Kamal Meattle, CEO, Paharpur Business Centre & Software Tech
Kamal Meattle
Paharpur Business Centre

Realty sector is one of the largest employers next to agriculture. Also, the construction sector has a direct impact on auxiliary industries such as cement and steel, which in turn pushes the economy.

As a part of pre-budget expectations Paharpur Business Centre and Software Technology Incubator Park (PBC- STIP) has few recommendations for the Budget 2012-2013 .

The property industry expects that affordable housing should be considered for priority lending. Banks needs to offer concessional rates to make property buying affordable for people. This will help to address housing scarcity in the country.

The realtor sector is also expecting an extension of 1 percent interest subsidy rebate, provided by the government in 2011-2012 budgets.

Budget 2010 brought a rude shock to prospective home buyers. It stipulated that construction of house (in any form - apartment / flat / row house / etc) by a builder in a complex is a 'service', and introduced the service tax of 10.3 percent on 33 percent of the total amount paid for flat/apartment.

In fact, a service tax of 10.3 percent has also been levied on any payment made by the builder for getting a preferential location for house / flat.

Green infrastructure cannot be ignored, in fact it has become a very vital topic. India has managed a good growth rate with various initiatives to combat climate change. There is no difference between development and environment.

To aid the national mission plan - build energy efficiency buildings:

  • Incentives should be provided for the use of the equipments in the energy efficient buildings.
  • Provision of duty exemption on purchase of power generating equipments etc. as it will lower down the burden of state electricity board.
  • Excise/customs duties should be reduced on the raw materials used for green buildings.
READ MORE ON  Budget 2013, real estate

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