GST Reduction, Rationalization of Taxes Key to Spurt Affordable Housing Demand: CBRE
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.
