Ahead of the Union Budget, the Shopping Centres Association of India (SCAI) has urged the government to offer financial relief to the industry through GST rate rationalisation, loan waivers, income tax deductions and relaxation in compliance norms.

In its representation to the Finance Ministry, the industry body, has called for tax holidays for construction of shopping malls and said an amendment is required in Section 80-ID of the Income Tax Act to allow deduction with respect to profits and gains malls business, constructed in specified areas.

Income tax deduction should be increased to 50 per cent against rental income from the present 30 per cent. No income tax should be levied on notional rent on unsold or vacant inventory after certification of completion, the SCAI representation added.

According to the industry association, which represents shopping centres and mall, by providing adequate financial relief in GST, loan waivers, income tax, relaxations in compliance timelines, additional deductions on CSR, and by incentivising digitisation, the government can help shopping centres, modern retail and associated sectors in recovering and reaching the pre-covid levels.

SCAI has urged policymakers to restructure GST norms to strengthen the industry through interest subsidies and reduction in GST rates. Among various other recommendations, SCAI stated that real estate developers will be able to maintain substantial cash flows if input tax credits for commercial real estate assets intended for leasing purposes are approved.