There is a need to remove taxes at various levels to make affordable houses for common people: Chairman NAREDCO

New Delhi: National Real Estate Development Council (NAREDCO) chairman Rajan Bandelkar believes that there is a need to remove taxes at various levels to make houses affordable for common people. He said that on buying a house worth Rs 1 crore, Rs 33 to 36 lakh goes as tax. Bandelkar said, “Unfortunately today, the ‘margin’ of developers in the real estate sector is in single digits. The government will have to reduce its share. ,

He said, “If you buy a house worth Rs 1 crore today, Rs 33 lakh to 36 lakh goes into the government’s account in one form or the other as tax. I am not talking about income tax. These various taxes and revenue are received by the central government, state governments and local administration. Thus one-third of the total cost of the house goes to the government.” Bandelkar while appreciating the steps being taken by the Prime Minister Narendra Modi government to make houses affordable, also requested him to waive some taxes.

“The government is already doing a great job for affordable housing, but to make it more affordable, all these taxes have to be removed,” he said. Before introducing the Goods and Services Tax (GST), the government had said that octroi tax would be removed, which was also removed. However, there are still many hurdles like stamp duty, local tax which are increasing the burden on the home buyers. The government should look into it.” During the event, Bandelkar expressed confidence that the contribution of the real estate and infrastructure sector to the country’s gross domestic product (GDP) would increase significantly in the next few years, which would exceed the current level due to its potential. Will cross seven percent. He assured the people that NAREDCO is committed to extend full support to the government in affordable housing and other development works.