Industry Reaction - Budget 2008
Budget to propel social and economic growth
Pradeep Jain - Chairman, Parsvnath Developers
New Delhi, February 29, 2008: Welcoming the Union Budget 2008-09, Mr. Pradeep Jain, Chairman, Parsvnath Developers Ltd has said that the announcements are aimed to improve social and economic infrastructure of the country by giving due emphasis to education, health and hospitality sector. The budget has however not fully addressed the demands of real estate industry.
"While we welcome the emphasis on education and health given by the Finance Minister, the long awaited demand for industry status for the Real estate would have gone a long way in providing the desired impetus to the growth of the sector which is highly capital intensive," Mr. Pradeep Jain said.
"A Tax benefit under Sec 80 I (B) for hospitals is a paradigm change and we expect a new generation health technology entering into tier II and III cities. Also, tax holidays for UNESCO sites hotel would definitely give boost to heritage tourism and are steps in the right direction. We however expected that the benefits would be extended to the other verticals as well." Mr. Jain said.
Adding more, Mr. Jain said, "The sops given to infrastructure and housing sector in rural areas is a welcome move, however, the reduction in duties and service tax benefits directly to consumers would have propelled the demand for realty across the country. The reduction in input cost of cement, steel etc will definitely benefit the sector."
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