The government should also fast track the implementation of INR 25,000 crore of financial help extended for completion of the stuck housing projects to improve sentiment. The government should look into increasing the rebate on interest on home loan to 5 lakhs. The another important incentive which government can offer is rebate on home loans for first time home buyers by reducing interest rates to 6-7%. For the same the government needs to implement benefit to the salaried class through increase in income tax rebate. Reforms only help if there is positive environment in the economy. Despite that customers and positive sentiments are still missing in the sector. The government has taken immensely important measures for the real estate industry. Biosimilars adoption in developed countries like Australia has saved Govt’s healthcare burden by 50-70% on Biologics spending”. This will require an investment of USD 500 million initially for international level modular biosimilars’ manufacturing. The Govt must look at introducing policy focusing on the use of Biosimilars for all chronic diseases like inflammation, pain, heart disease, diabetes, cancer, high blood pressure, etc. GST on health tech /healthcare should be exempted this will encourage more innovations in the healthcare sector. Policies and initiatives like moving towards reimbursed market or co pay market from the current out of the pocket market must be mulled over. While sharing expectations and recommendations on behalf of the digital healthcare players, Manish Chhabra, CEO & Founder, Shifa Care says, “The Finance Minister must look at allocating at least 25% increase in last year’s budget of INR 62, 398 crores for the healthcare sector, making it more affordable for the lower strata. Manish Chhabra, CEO & Founder, Shifa Care It also increases the challenges of cash flows available, especially when there is a liquidity crunch in the sector at the present. This creates an unnecessary burden and pushes up the cost of construction. Clearly, this needs to be addressed and should be removed. When the properties are not sold but developed for leasing, GST at 18 percent is applicable, basis this theory that this is a service. On the commercial real estate front, clarity is needed about the treatment of goods and services tax (GST) on projects which are being strata sold versus those being developed for leasing. More liquidity should be provided to the masses through raising personal tax exemption limits to improve overall sentiments.”Ĭommercial real estate sector have shown an evident growth and booming activity as compared to the residential market.
Home loan interest deduction should be increased to INR 5 lacs to improve sales. Interest rates on home loans should be reduced to 7% for the affordable housing segment which is going to be the flavour of the year 2020, due to demand from end users and millennial. The demand for luxuries under the affordable housing segment is increasing with new age millionaires. “The limit of 45 lacs to avail reduced GST rates of 1% for affordable housing should be increased to INR 65-75 lacs within the prescribed 60 square metres of carpet area to avail GST benefit exemption. Honeyy Katiyal, Founder of Investors Clinic Here are few industry captains sharing their expectations and recommendations from the Union Budget 2020-21. Whether it is a taxpayer, corporate or a tax expert, everyone has got some expectations from the Finance Minister Nirmala Sitharaman. The countdown for the Union Budget 2020 has begun.