The ‘Mhaje Ghar’ and ‘Mhajo Flat’ schemes launched by the government are just an eyewash during elections to gain votes, which will not benefit niz Goemkars. Through the sweat of their brows, citizens have worked hard to earn an income and invest in properties, not to have them taken away by outsiders claiming them through such clandestine schemes and cleverly camouflaged channels.
The job situation is not rosy, with lots of hurdles for young people trying to find jobs of their liking. Unemployment stands at 10%. The better part of these schemes is that there are tax rebate benefits under Sections 24, 80C and 80EEA, besides PMAY, yielding benefits of up to ₹3.5 lakh under the Majhe Ghar or Majhe Flat schemes.
Such "give a little and get more" government schemes, in which the benefits are marginal, can be defined as election gimmicks that are likely to be withdrawn soon after elections end. Regulation through manipulation is the art of economics devised by the government. GST on the affordable housing scheme is 1%, compared with the normal rate of 5%, resulting in a 4% saving on investments.
Under PMAY, women get a 1% concession on stamp duty for property purchases, which is hardly substantial in affordable housing. Trimming stamp duty is hardly noticeable, considering the volume of transactions carried out. GST and VAT are burdensome, adding to the cost of borrowings and property transfers, which the government has failed to address.
These schemes are likely to dwindle in the long term with subsequent changes in ordinances and government policies. The crux of the problem is unaffordable housing, with land and built-up property prices skyrocketing to the extent that they are beyond the reach of the common man. Slashing stamp duty and taxes is one way of tackling this perplexing problem, so that everyone can proudly own a truly Majhe Ghar or Majhe Flat, without drowning under a debt burden and inevitably sinking into a debt trap.
ASHLEY NORONHA, Fatorda
