Industry status

Budget 2021: Industry Status in Hospitality Will Boost Tourism, Says Brigade Enterprises Executive Director

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“The status of the hospitality industry will boost tourism”

Pavitra Shankar, Executive Director, Brigade Enterprises Ltd.

By Pavitra Shankar

Rising input costs have been a concern for the real estate sector. For one thing, cement, which is a vital raw material, currently attracts 28% GST, which is the rate at which luxury items are taxed. A reduction in the GST on cement would be a welcome announcement for the sector. Also, the reinstatement of the input tax credit by the government would be a welcome move as it would ease the burden on property developers and allow for more efficient pricing for the end consumer.

Extending the timeframe to approximately 7 years for the completion of affordable housing from the current 5 years from the date of assent will provide much-needed impetus to developers. The hospitality and tourism sectors have been hardest hit by this pandemic. The industry’s status in the hospitality sector along with a reduction in GST rates for hotels and restaurants will help boost travel and tourism. The status of infrastructure for commercial developments, GST credit on inputs and tax benefits for data center developments, given the opportunities and requirements, would greatly help the commercial sector.

The government should consider creating a corpus to invest in startups that add value to the real estate sector, with a particular focus on sustainability. The government should also encourage the growth of proptech startups through public-private partnerships by creating proptech-focused incubators.

(The author is the executive director of Brigade Enterprises Ltd.)

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