Realty seeks tax, input price relief

New Delhi: Real estate companies wish for taxes to be lowered and prices of construction materials controlled in the forthcoming budget.
Vipin Agarwal executive director of Omaxe Ltd states that they want tax breaks on infrastructure, which were there till last year. Infrastructure improvement is important for the improvement of the country. So they should get some encouragement in the form of tax breaks to invest in it.
Realty firms are also bothered about the towering prices of construction materials in India. Abhinandan Chatterjee, president and chief financial officer of BPTP Ltd told that the rocketing prices of steel and cement are affecting construction cost, the government should try to rationalize prices of construction materials so that the costs of developed properties remain under control and the benefit is passed on to the buyer.
Real estate firms want all incomes from rent to be exempted from income and service taxes.
“Service tax should be abolished as it is an unnecessary burden for us,” said Ashish Gupta of Aerens Goldsouk International Ltd. Developers also want a cut in lending rates in construction and housing finance. “I think interest rates on loans should be lowered substantially to make purchasing properties easier,” said Chatterjee. “The demand is low at the moment because of high interest rates,” he added.
However, interest rates are an outside-the-budget decision to be taken by banks.