In a
recent report by the PHD Chamber of Commerce, findings from various real estate
bodies have suggested that the Center advise all the states to extend the
deadline for Real Estate Regulatory Authorities (RERA) to complete projects
ranging from six months to 1 year. Should be given just 3 months in the wake of
the COVID-19 crisis and the ensuing nationwide lockdown.
The
industry body has also proposed that a six-month suspension period be allocated
for payment of local body taxes such as municipal taxes and property taxes.
It
further suggested that current projects are considered assets to be loaned to
developers.
The
report states: “Stamp duty and registration fees should be reduced or waived on
flats completed for a period of about one year. This will not only be a major
challenge for the real estate sector, but it will also boost demand in key
industries like cement, steel, electrical etc., while at the same time
providing employment opportunities. This can go a long way in rejuvenating
economic activities. "
It
acknowledged that although the RBI's cut in the emergency rate would reduce
interest rates, consumer sentiment should be further stimulated to buy a home.
According
to the report of the Board of Industries, "It is suggested that the
deduction in interest for home purchases should be reduced this year. For
example, for the current year, the deduction of interest may be paid 200
percent of the interest. , Followed by deduction of 175 percent interest paid
for the second year, 150 percent deduction of interest paid for the third year
and so on. "
It has been suggested that the
industry would be helped, such as during the COVID-19 crisis, that the minimum
wages of construction workers would be borne by the government using labor funds
collected by the developers.
The report also touched on a long-awaited request for
industry status for the real estate sector.
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