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The realtors have urged the government to continue allowing investment of undisclosed money in real estate to help the sector flourish unhindered.
They observed that the proposed national budget for the 2022-23 fiscal year will hold back growth in the housing and construction sector unless the provision of investing undisclosed money remains in place.
“However, continuation of investment of undisclosed money will be a respite for the sector,” REHAB President Alamgir Shamsul Alamin said on Saturday.
The finance minister, in his latest budget speech, did not propose to continue the amnesty for black money in the sector.
Speaking at a post-budget press meet, Real Estate and Housing Association of Bangladesh President Alamgir Shamsul Alamin said Tk206 billion was whitened in the fiscal year (FY) 2020-21 and the amount would rise to Tk500 billion if the government continues the amnesty for black money.
He believes the sector will be able to play a productive role in the government’s revenue earning if its demands are met.
Alamin made the call at a press conference on the proposed budget for the FY 2022-23 at a city hotel.
In the pre-budget proposal, the association had also demanded keeping the provision of legalising undisclosed money.
The budget for the FY 2020-21 had allowed undisclosed money holders to invest it in the capital market, cash, fixed deposits, and land-flat with a 10 per cent tax. Later, the facility continued for the FY 22 with more 5 per cent fine.
The REHAB president said the cost of various raw materials, including rod, and lift, will increase in the next fiscal year because of the rise in value-added tax and customs tariff.
The National Board of Revenue (NBR) proposed raising the indirect tax by Tk200 per tonne at the manufacturing level of billet and rod.
After the increase, the rate of VAT on the manufacturing of billet will rise 20 per cent to Tk1,200 per tonne from Tk1,000.
“Consequently, prices of rod will increase affecting the home builders,” said Mr Alamin.
He called upon the government to provide proper policy support for the real estate sector’s development.
He said land and flat registration costs should be reduced.
The country will be able to reach the growth target for gross domestic product if the manufacturing sector, including the housing sector, remains dynamic, he added.
(FE)
