Since the real estate sector is a major contributor to the country’s economy and also a major employment generator, support from the Government is essential to help it grow. The Union Budget provides an opportunity for that and the industry is hopeful its expectations will be fulfilled. Legislation like the RERA Bill and the GST Bill; industry status and single-window clearance are key issues which need to be tackled in the forthcoming Budget.
It’s that time of the year when the most eagerly awaited annual event – the Union Budget for the year 2016 is set to arrive. Every year the Budget is
presented with the aim of improving the overall economy of the country. The real estate sector is considered as one of the principal factors contributing to the country’s GDP and employability.
This sector being extremely significant for the country’s growth, therefore, requires a strong support through the Government’s initiatives and
decisions by way of the upcoming Budget.
Understandably, the sector has its share of expectations from the Budget for finding its moorings; to steer the industry towards a faster growth track. A few key reforms that the industry anticipates will see the light of the day during the upcoming Budget session involve:
Real Estate Regulatory Bill: The RERA Bill is a pioneering initiative to promote fair play in real estate transactions. Implementation of this much awaited Bill will induce transparency and inclusion of Government agencies under the ambit of this Bill will address better governance and rule out slow approval processes contributing to project delays.
Goods and Service tax Bill: A crucial reform needed in taxation structure, the enactment of this Bill will bring about reduction in construction costs, avoid multiplication of taxes and help in substituting numerous taxes with a single tax thereby ruling out confusion in buyers. A streamlined and progressive taxation structure will bring in transparency and promote the steady development of the sector. Single-window clearance: Time and again, developers have been pressing the need for a time bound single-window clearance.This system will facilitate developers to obtain permissions in a simplified, timely and rationalised manner and will rule out corruption at various levels. If the sector has to perform efficiently, regulatory issues must be addressed and approvals need to be streamlined.
Industry status: The real estate sector generates employment across various verticals and has been anticipating industry status for a while now. By granting this demand, the Government will enable the sector to access funds at reduced interest rates and collateral values thereby making housing more affordable.
Thus, this Budget is extremely crucial in terms of future development of the nation’s realty sector.We hope it will create a facilitating environment
for growth and shape the upcoming days of tbe industry.