Budget 2020 expectations: FM should restructure realty sector loans

By Rajan Bandelkar

We are highly optimistic about the union budget and are expecting the Finance Minister to take corrective measures that would ease out of the liquidity challenges the sector is grappling with. The ease of liquidity can enable the buyers to make purchases and also support the idea of Housing For All. A real financial impetus to the real estate sector can come with a major overhaul in terms of GST relief and curtailing home loan rates.

Rationalisation of taxes and premiums is another area of improvement where stamp duty charges can be included in the GST rate. The sector needs a one-time subvention scheme and restructuring of realty sector loans. Real estate sector needs treatment like information technology sector where tax holidays and moratorium played a key role. Also, slashing of home loan rates will change the demand dynamics among the low, middle and higher income groups. The Finance Minister should consider enhanced deduction tenure for taxation purposes, which will boost home buying. To ensure consistency and seamlessness, the Government will have to take steps and eradicate the hurdles from the course of growth of the industry.

(Author is is President, NAREDCO Maharashtra & Managing Director of Raunak Group)