There should be parity between banks and HFCs as far as RW and CAR are concerned.

Service Tax on complex services was introduced through Finance Bill 2005. It is an additional burden on home buyers and deterrent for housing development. Residential housing projects should be taken out of service tax net.

Abhisheck Lodha, Director, Lodha Group:

The government needs to bring fiscal deficit under control and spell out a long-term plan to bring the fiscal deficit to the norms approved in the Fiscal Responsibility Bill.

It should introduce IT exemption u/s 80 IB of the IT Act, for profits earned from sale of units in affordable housing projects, that is, projects in which the cost of the units is Rs. 25 lakhs or less.

It should increase affordability by reducing costs of input materials through rationalisation of duties and taxes and reduction of import duties. Specifically, ensure lower delivered cost for cement, steel, aluminum (windows) and timber products.

It should also implement proposal of the Housing Ministry to give 25 per cent subsidy towards cost of infrastructure for affordable housing projects of 25 acres or more.

The government should provide funds to start a National Construction Skills Training Institute with 4 centres being setup initially (Mumbai, Delhi, Kolkatta and Hyderadad) to provide free / low-cost training to construction workmen to improve their productivity and enable them to earn higher wages. l

(Compiled by PRAVEEN K SINGH)