Proposed budget to jeopardize housing Industry: REHAB

A proliferation in income tax at source during land registration, and a new additional tax on various construction materials in the proposed budget will jeopardize the country’s housing Industry, said Real Estate and Housing Association of Bangladesh (REHAB) President Alamgir Shamsul Alamin Kajal on Friday.

REHAB chief came up with the remarks in his reaction to the proposed budget placed by Finance Minister AHM Mustafa Kamal for FY2023-24 in Parliament on Thursday, according to a press release.

“If the proposed budget is not revised, the prices of land and flats will increase further which will potentially impact the customers and fulfilling the dream of housing for many will become more difficult,” he said in an immediate budget reaction on Thursday.

The proposed budget has imposed additional duties on cement, stone, tiles, lifts, ceramics, glass, switch sockets, cables, and kitchenware and realtors are the buyers of those construction materials. Finally, the burden of the excessive price of these expensive products will fall on the flat buyers, he said.

The REHAB president called for a review of the proposed national budget to protect the housing industry fearing that if the prices of these products are not kept tolerable, there will be a crisis in the housing industry.

The sales volume in the housing and real estate sector has already decreased significantly due to an increase in the price of construction materials, and a decrease in the prices of new DAPs, the REHAB President said.

“Besides, the sector has gradually come under serious threat due to various taxation and lack of government policy support in this emerging sector. Amid such conditions, it is impossible to overcome this crisis without immediate support from the government”, Alamgir Shamsul said.

REHAB previously made various demands related to housing in the pre-budget discussion, but none of them was reflected in the proposed budget, he said. He demanded opportunities for investment of undisclosed money, reduction of registration fees in old flats to strengthen the secondary market system of flats and formation of a special fund.

Keeping investment opportunities for undisclosed money will give a benefit to the economy as well as create new employment and will be easier to deal with the ongoing economic crisis, he added.