Builders demand regulation of cement
The Builders’ Association of India (BAI) has demanded the setting up of a “Cement Regulator” and implement other reforms and regulatory mechanisms for the construction sector to ensure its streamlined growth. The subcontractors in the construction sector are still levied…

The Builders’ Association of India (BAI) has demanded the setting up of a “Cement Regulator” and implement other reforms and regulatory mechanisms for the construction sector to ensure its streamlined growth.

The subcontractors in the construction sector are still levied Goods and Services Tax (GST) of 18 % which has to be reduced further, BAI said in a statement in Hyderabad.

B Seenaiah, Chief Patron of BAI, said a “Cement Regulatory Authority” will help control the pricing and prevent cartelization by  manufacturers and unfair practises.

“In fact, if a regulatory mechanism is in place, the cost of house construction can be reduced to a competitive Rs 50 per sq.ft. making housing affordable for all, he said.

“The subcontractors in the construction sector are still levied GST of 18% which has to be reduced further. Also, out of the Real Estate Industry GST, 6% is regarded as land value. Land valuation deduction under construction of complexes should be based on the actual cost of the land or should be based on value mentioned in the ready-reckoner,” Seenaiah said.

Bhishma R Radhakrishnan, Chairman of the three-day BAI national convention, which is to begin in Bangalore on Jan 19, said “we are the only sector paying all the taxes starting from GST, sales tax, municipal taxes and so on.”

BAI said 2017   was not good for the builders and contractors as business touched the lowest point. “We hope that 2018 will be a revival for us,” Radhakrishnan said.

BAI national president Veera Raghava Reddy said many builders were on the verge of bankruptcy due to exorbitant delay in release of payments, redtapism, failure in time bound clearances, lack of clarity in GST, cement manufacturers’ cartel and unused labour welfare cess.

The government had so far collected Rs 400 bn as labour welfare cess but not even 10% of it had been utilised yet, he claimed.

(ends)

Related Articles

Related

Affordable housing sector gets boost

Residential property sales across tier-I cities rose 9% from a year ago led by affordable housing and performance of southern property markets of Bengaluru and Hyderabad, ET Realty reported. Sales volume in Bengaluru and Hyderabad rose 26% and 24%, respectively,...

read more

Liquidity crunch, defaults hit housing projects

An analyst says these days  must be the most eventful period for real estate with major disruption taking place at the same time. A series of reforms in the form of demonetisation, implementation of Real Estate (Regulation & Development) Act, 2016, the Goods &...

read more

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Share This