Homebuyers unlikely to gain from reduction in corporation tax rates

Property developers are unlikely to pass on any benefit to homebuyers in the form of price cuts

Prospective homebuyers are unlikely to reap any benefit from the corporation tax rate cut announced by Finance Minister (FM) Nirmala Sitharaman last Friday as developers are in mood not to cut prices of apartments.

They feel unit prices are already pretty low. Sitharaman had reduced tax on corporate entities from 30 per cent to effectively 25.7 per cent, in a bid to boost the economy reeling from a slowdown.

But property developers will not pass on any benefit to homebuyers in the form of price cuts.

“Prices are already low. They will remain low, as supply will go up after the reduction in