Page 46 - Plastics News February 2017
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FEATURES
Impact on Companies: – These would enable purchasers to get more spacious
homes and affordable housing segment will be more
– Tax benefit under 80IA will not be available for the lucrative for the developers
sector and also accelerated depreciation benefit will
be reduced for the renewable power projects with – These would provide tax relief to developers in the
effect from April 1, 2017 at 40% as announced in the residential sector holding inventory
budget of 2016-17.
– This might lead to increase in demand since this may
Impact on the Industry: increase the secondary sales as well
– Overall neutral. ROADS
– Present opportunity for players in the transmission, Proposals:
off-grid/decentralised power segment.
– Increase in budgetary allocation from R57,976 crore
– Solar parks would continue to attract interest of during the last budget to R64,900 crore for 2017-18 is
developers, including international players. expected to provide further opportunity for the road
developers.
– Overall neutral since most of the solar modules are
imported. – Proposal to enhance coastal connectivity through road
construction of 2,000 km
REAL ESTATE
– A mechanism to streamline institutional arrangements
Proposals: for resolution of disputes in infrastructure projects
is going to be introduced as an amendment to the
– Infrastructure status to affordable housing Arbitration and Conciliation Act 1996
– Under the scheme for profit-linked income tax – Extending carry forward of Minimum Alternative Tax
deduction for promotion of affordable housing, (MAT) from current limit of up to 10 years to a limit
carpet area instead of built-up area of 30 and 60 up to 15 years
square meters will be counted. The 30 square meters
limit will apply only in case of municipal limits of 4 Impact on Companies:
metropolitan cities while for the rest of the country
including in the peripheral areas of metros, limit of – The proposed increase in budgetary allocation and
60 square meters will apply various reforms initiated by the government to
resurrect private participation is expected to have
– Capital gains on Joint Development Agreement to be a positive impact on the companies operating in this
taxed only at product completion sector in the medium term.
– 1 year tax exemption from notional rental income Impact on the Industry:
from unsold inventory
– Increased budgetary allocation is expected to boost
– Reduction of long-term capital gains tax period from the sector and increase award and execution of new
3 years to 2 years projects
Impact on Companies: – The new projects are expected to offer investment
opportunity of around R24,000 crore for the sector
on Overall, companies with focus on affordable housing
development will have a positive impact – Effective introduction of stated mechanism and
its implementation thereof in 2017-18 can help in
Impact on the Industry: addressing the hurdles faced by the sector
– This would increase the private participation in this – Expected to provide tax benefits to SPVs of road
segment and also lending to this segment will be a projects for a longer period while improving the
priority lending for banks. This will allow developers project returns.
to access funds at lower rates
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