The economic direction that the budget has pointed out is an encouraging one. The push for infrastructure and the plan to build two crore houses in urban areas and four crore houses in rural areas under the government’s policy to provide housing for all by 2022 is a welcome step.
While the implementation of the Goods and Services Tax by 2016 will help boost the economy, the additional depreciation of 20 percent on new plant and machinery installed by manufacturing units will be of much help to companies engaged in manufacturing activities.
The proposed reduction in corporate tax from 30 percent to 25 percent in the next four years will leave further funds for additional investment in economic activity in the hands of corporate entities, furthering employment.
The decision to overhaul capital gains taxes to pave the way for the listing of Real Estate Investment Trusts (REITs) in the country is a step forward that will indirectly aid the promotion of housing for all in the country.
However, it is disappointing that real estate has not been considered as part of infrastructure or given industry status, something that would have impacted the sector in a very helpful manner for the good of all. Further, the largely unchanged tax slabs for individual tax payers and unchanged interest structure on home loans means an opportunity has been lost to promote this sector especially considering that the government has already announced its intention to have housing for all in seven years.
