Union Budget 2022: FICCI Proposes Support Measures For Housing Industry; Seeks Zero Customs Duty On Ferronickel

The chamber also recommended to subsidise the usage of 6-7 cylinders in a year to poor households

An interest subsidy of 3-4 per cent on housing loans could also be offered for a period of 3-4 years, according to FICCI. Image: Getty

New Delhi: Ahead of the Union Budget, Indian industry body FICCI has urged the central government to provide an interest subsidy of 3-4 per cent on housing loans and extend the concessional tax rate of 15 per cent to companies that invest in green technologies, in the upcoming Union Budget.

Housing and construction sectors have forward and backward linkages and impact nearly 200 sectors and it needs to be provided holistic support in the forthcoming Budget, it said.

“An interest subsidy of 3-4 per cent on housing loans could also be offered for a period of 3-4 years. Extend a concessional tax rate of 15 per cent to companies that invest in green technologies on or after a specified date and also allow full deduction towards investment/ purchase of green technology assets,” FICCI said in a statement.

The chamber also recommended to subsidise the usage of 6-7 cylinders in a year to poor households; increasing collateral-free loans under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) from the existing Rs 2 crore to up to Rs 5 crore. It also suggested the extension of the sunset date for newly incorporated domestic companies to commence their manufacturing till March 31, 2025.

“Due to the outbreak of the Covid-19 pandemic, the setting up of manufacturing facilities/production plans, regulatory approvals, resource planning, etc (which typically takes a considerable amount of time) within the sunset date of March 31, 2023, has become difficult,” it said.

FICCI has also requested the government to reduce the basic customs duty (BCD) on ferronickel to zero and levy a higher duty of 12.5 per cent on the import of stainless steel flat products, according to a PTI report.

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for FY22-23 on February 1.

In its Budget recommendations, the chamber has also urged the government to continue with zero duty on stainless steel scrap after March 31, 2022.

At present, while the BCD on ferronickel is 2.5 per cent, the same on stainless steel flat products is 7.5 per cent. On stainless steel scrap, zero customs duty is applicable up to March 31, 2022.