Finance Minister Jaswant Singh on Friday said that it would not be sensible to reverse the policy for the housing sector which has shown 25 per cent growth in the past three years.
Singh told Parliament that the government planned to continue with fiscal incentives for the housing sector.
He did not say what steps the government would take for maintaining the growth rate in the sector.
The finance minister's announcement had an immediate impact on the stock market. A major gainer on the bourses was HDFC, which spurted by 6.85 per cent to touch a high of Rs 386.30 immediately after the finance minister rejected the proposal to waive tax sops in housing.
The Kelkar committee on indirect tax reforms had suggested that tax incentives for housing loans be withdrawn as part of the overall revamp of tax policy.
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