CREDAI [Apr 2012]

We as the umbrella body of real estate in the country feel disappointed by the unyielding measures taken by Mr. Finance Minister in the Union Budget of 2012-13. Coming as a disappointment to us, the policy measures as rolled out in the budget has failed to highlight the role of the housing sector in the economy while also failing to acknowledge the significance of employment generation by the sector and the need of housing in the country. The budget is clearly an opportunity missed by the government in achieving the dual purpose of providing shelter to weaker sections while boosting the GDP of the country. The proposal of bringing in an umbrella tax structure to the cement industry will increase the cost of housing in India and will negate the development process of the sector. Also providing ECB to affordable housing is a minor respite to the sector but its significance in the longer run will be absolutely meaningless. With the proposed policy measures there is an inherent risk of liquidity drying up in the Indian real estate sector wherein the exemption of capital gains tax to invest in small and medium enterprises may result in cash out from real estate. -Lalit Kumar Jain, National President, CREDAI

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