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NAREDCO seeks GST cut, sops for rental homes

NAREDCO's representatives made these demands in a meeting with senior officials of the PMO. They also thanked the government for its recent decision to reduce GST rate on affordable housing to 8 percent.

Realtors' body NAREDCO made several demands to achieve the target of 'Housing For All' by 2022, including halving the GST rate to 6 percent, incentives to promote rental homes and infrastructure status for the entire residential segment.

NAREDCO's representatives made these demands in a meeting with senior officials of the PMO. They also thanked the government for its recent decision to reduce GST rate on affordable housing to 8 percent.

The association hailed the Budget but said more needs to be done for the real estate sector to meet the target of Housing for All by 2022.

"GST rate should be 6 percent for an entire housing sector," NAREDCO President Niranjan Hiranandani told reporters here.

He also talked about the need to promote rental housing and sought "enough incentive" for development of such homes.

On the Budget proposals for real estate, Hiranandani said: "We are not really happy... Happiness is a state of mind, it is more about expectation. We had a lot of expectations."

However, he said a lot has been done for this sector in last two years, including infrastructure status for affordable housing.

Hiranandani said the sector needs more incentives if 'Housing for All' has to be achieved by 2022.

NAREDCO will also meet senior officials of the housing ministry and plans to present its wish-list to the finance minister.

"We held a meeting with PMO officials. We will also send our representation to PMO soon with suggestions to boost real estate sector and achieve Housing For All mission," he said.

Apart from GST cut and sops for rental housing, he said the government should take a re-look at the concept of notional rent.

"It is unhealthy for the industry as well as for the people...If there is a vacant flat then you will be charged a tax based on notional rent," he said.

NAREDCO Vice-Chairman Parveen Jain welcomed the Budget announcement that no adjustment shall be made in respect of transactions in immovable property where the circle rate value does not exceed 5 percent of the consideration.
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