India ranks an abysmal 184 out of 189 countries in ease of getting construction permits. Drastic steps are required to cut down red-tapism and approval delays with involvement of multiple agencies. Though the industry has the potential to rebrand itself, government initiative is needed to bring about any real change.
- Granting infrastructure status for housing is of paramount importance. This will enable banks to provide priority sector lending and bring taxation benefits.
- Prime Minister Modi announced housing for all by 2022 during his election campaign. Simple SoP and small conclusions are not going to help achieve this goal.
- Exempt housing and construction sector from service tax or fix a lower rate as GST specifically for housing. GST will likely cast a burden on home buyers. This move will directly benefit home buyers.
- Policy changes for providing input credit for registration and stamp duty for housing projects. Now the process involves paying stamp duty twice, once by the developer and a second time by the buyer. This pushes the cost of owning a home further by 4 to 5 per cent.
- It is necessary to increase the exemption limit on the housing loans from two lakh to five lakh. Further, the threeyear limitation for possession of the home should be removed, as buyers are unnecessarily penalised.
- Waiver of approval fees and other benefits may be provided as an incentives to encourage green buildings.
The writer is Managing Director, NAVIN’S
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