In New Delhi, real estate companies are advocating for reduced taxation and better regulation of construction material prices in the imminent budget. Vipin Agarwal, the executive director of Omaxe Ltd, expressed that the sector expects tax relief on infrastructure, which was previously available until last year. He emphasized the necessity of infrastructure advancements for national development, urging the government to provide incentives, such as tax reductions, to promote investment.
Additionally, the steep costs of construction materials are a significant concern for realty firms across India. Abhinandan Chatterjee, the president and chief financial officer of BPTP Ltd, remarked on the soaring prices of steel and cement, which adversely impact overall construction expenses. He noted, "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."
A collective call from these firms includes the demand for all rental income to be exempt from both income and service taxes. Ashish Gupta, associated with Aerens Goldsouk International Ltd, pointed out, "Service tax should be abolished as it is an unnecessary burden for us." Furthermore, developers are advocating for reduced lending rates pertaining to construction and housing finance. Chatterjee added, "I think interest rates on loans should be lowered substantially to make purchasing properties easier," mentioning the current low demand linked to elevated interest rates. He acknowledged, however, that adjusting interest rates is a decision beyond the budget's scope, falling under the purview of banking institutions.