Budget 2023: Realty Sector Reduction in Stamp Duty
Budget 2023: Realty sector seeks reduction in stamp duty, tax relief, green building push among other incentives
As the Indian real
estate market emerges from the shadow of a global epidemic, it has higThe demand for residential housing in India's top
eight cities increased by more than 15 per cent year on year. Similarly, a
significant rebound is expected in 2023. The real estate industry expects the
government to take specific steps to smooth the road to recovery at a time when
it is dealing with post-Covid issues such as rising input costs and
razor-thin margins.h expectations for Budget 2023.
fact that demand for real estate in India has increased in recent months, the
real estate and construction industries are hoping for some specific relief.
Even though the Coronavirus pandemic reduced site visits and home demand across
the country, the months that followed inspired confidence with a resurgence in
Speaking of the same,
Gurmit Singh Arora, National President, Indian Plumbing Association said,
"Stamp duty needs to be reduced. Following the implementation of GST, the
industry was burdened, and it is extremely difficult for builders to pass it on
to consumers. This can be accomplished by granting waivers rather than
incentivizing it. In order to reduce the nation's carbon footprint, the
government should incentivize green building. The government should also
encourage and recruit more entrepreneurs."
There is an express need for more tax sops for home buyers as well as investors. In the opinion of Nakul Mathur, MD, Avanta India, "Indian real estate stands on a strong footing with a hike of 50% in sales transactions in 2022, compared to the previous calendar year. The positive sentiments will continue in 2023 backed by a healthy economic outlook, expansion in the job market, and a rise in per capita income. Meanwhile, it is also imperative for the governing agencies to take proactive steps to further build consumer demands alongside streamlining the supply cycle. Steps such as reducing GST rates on raw materials such as cement & steel, offering better credit for developers, and single window clearance can immensely help the overall sector."
Hari KishanMovva, Senior Vice President, SILA (Real Estate) comments, “Commercial real estate had a mixed year in 2022 with flexible office providers performing well. The 2023 budget the industry hopes will offer some positives to help strengthen the real estate market. Given that the inflationary environment is the key risk for real estate, we are also expecting a leeway in terms of reduction in GST rates for key raw materials and re-introduction of input tax credit which would help developers tide over inflationary pressures.”