GST Reduction, Rationalization of Taxes Key to Spurt Affordable Housing Demand: CBRE
By: Admin
June 03, 2024
Categories: GST Recent News
4 Min Read
The reduction of Goods and Services Tax (GST) and rationalisation of taxes are essential to boost demand for affordable housing, according to Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East and Africa.
Magazine emphasised the need for fiscal stimulus to further improve the economy, which has shown promising growth with a 7.8 per cent increase in Q4 and 8.2 per cent in FY24. “The economy is in good shape, but the main expectation from the budget is always on taxes,” he said. He highlighted the potential for tax reduction, both direct and indirect, to encourage investment.
Regarding GST, Magazine pointed out that lowering rates, particularly in the real estate and construction sectors, could significantly boost affordable housing. “If the government wants to encourage affordable housing or commercial real estate, GST rates must come down for inputs like cement and steel,” he stated.
Speaking on the sidelines of an event in New Delhi, Magazine also shared his insights on the transformation of the real estate sector in the last 10 years. At the event, Stefano Pelle, an author, teacher and travel enthusiast, unveiled his book ‘Going Places’. The book, which blends engaging travel stories with contributions from top business leaders, was launched in the presence of prominent personalities including Member of Parliament Dr. Shashi Tharoor, Yashovardhan Azad, and Anshuman Magazine.
Discussing the transformation of the real estate sector over the past decade, Magazine identified two key factors. “The introduction of RERA has regulated the industry, and institutional money flowing into real estate has been a major trigger for this change,” he said.
The upcoming budget, expected to be presented in mid-July, is anticipated with high expectations from various sectors, including real estate, to provide the necessary fiscal measures to sustain and accelerate growth.
On the CBRE’s latest report which showed that the leasing of office space by foreign firms for setting up Global Capability Centres (GCCs) rose 17 per cent last fiscal year, he said that India’s strategic emphasis on digital technology, combined with its competitive costs for talent and rentals, remains instrumental in propelling the growth.
Source from: https://www.timesnownews.com/business-economy/industry/gst-reduction-rationalization-of-taxes-key-to-spurt-affordable-housing-demand-cbre-article-1