Measures put forth to ensure affordable and decent dwelling

This was outlined in the Budget 2019-2020 which provides for the construction of some 6 000 housing units on 16 sites around the country over the next three years, to the tune of some Rs 11 400 million. To that end, people with households earning monthly income between Rs 10 000 and Rs 15 000 will benefit from a subsidy of 60 percent on the cost of a housing unit while those earning above Rs 15 000 and not exceeding Rs 20 000 monthly will benefit from a subsidy of 30 percent.

Two new thresholds have been included in the Budget so as to make the National Housing Development Company Ltd (NHDC) houses more affordable to a larger number of families whose households’ monthly earning income range between Rs 20 000 to Rs 25 000 and Rs 25 000 to Rs 30 000. The latter will benefit from a subsidy of 25 percent and 15 percent respectively.

In view to encouraging middle income families to invest in their own dwellings, Government is also raising the threshold value of bare land that a first time buyer may acquire, free of registration duty, to build a house. The exemption will apply on the first Rs 2.5 million of land value which represents an additional benefit of up to Rs 25 000 per buyer.

First time buyers will benefit from full exemption from registration duty on the purchase of an existing house or apartment of up to Rs 5 million instead of Rs 4 million and no registration duty will be payable on a secured housing loan for an amount not exceeding Rs 2.5 million.

The eligibility criteria and duration of the VAT Refund Scheme have also been reviewed so that more citizens have the opportunity to construct their residence or purchase apartments.  Moreover, the Building Materials Grant Scheme and the Roof Slab Grant Scheme are being extended to households who have already benefitted from Corrugated Iron Sheet and Concrete cum Corrugated Iron Sheet housing units and also to families living in Ex-CHA houses which contain asbestos.