Trade Minister Kamal Nath said on Monday he favoured lowering of duties and levies to help the booming real estate sector sustain high growth.
"I favour what will stimulate demand in the sector. The government has to look at it," Nath said, referring to high duties on building and construction materials.
However, he did not disclose what his ministry would recommend to the finance ministry for the next budget.
Taxes on building materials like cement and steel, stamp duties on purchase of property and other state levies make up almost 25 percent of the total cost of dwelling units.
The Confederation of Real Estate Developers' Associations of India (CREDAI) chairman, Kumar Gera, said the total cost of floor space of an average housing unit was 2,700 rupees per square feet and about 700 rupees comprised taxes and levies.
"These (duties) have to be brought down for housing to be more affordable," Kumar said at a conference on the real estate sector.
Nath said the real estate sector was growing at an annual 13-14 percent and this has attracted foreign investors to the sector.
"With the economy on an upswing, the emphasis and requirement today is on creating international standard infrastructure and housing facility to sustain the growth rate projected in the five year plan," Nath said.
India's real estate sector has pushed up demand and prices of cement, steel and other materials in the last few years, apart from contributing to economic growth.
No comments:
Post a Comment