Proposed budget may impede housing, construction sector: REHAB

Claiming that the proposed national budget for the 2022-23 fiscal year will impede growth in the housing and construction sector, REHAB President Alamgir Shamsul Alamin on Saturday urged the government to continue allowing investment of undisclosed money in the sector.

Alamin made the call at a press conference regarding the proposed budget for 2022-23 fiscal year at a hotel in Dhaka.

"We made several proposals before announcing the budget, but our proposals have been ignored in the proposed budget for FY23," he added.

He urged the government to provide proper policy support for the real estate sector’s development.

"Land and flat registration costs should be reduced. We request Bangladesh Bank to form a refinancing fund of Tk 20,000 crore for housing loan in the next budget," he added.

Alamin hoped that around Tk 50,000 crore can be invested in the real estate sector if the government continues allowing investment of undisclosed money for the next 2/3 years. He also urged the government to take necessary initiatives to reduce construction materials prices.

According to the Finance Bill 2022-23, the government withdrew the clause allowing investment of undisclosed money in real estate, which was introduced in 2020-21 fiscal year to bring more investment in the sector.

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The budget for FY2020-21 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 FY22 with more 5 per cent fine.

Dr M Masrur Reaz, chairman of the Policy Exchange of Bangladesh, said, “The trend of black money whitening will discourage and dishonour honest taxpayers. We now need to create a taxpaying culture. The trend of whitening black money will stand in the way of developing the taxpaying culture in the country.”

The economist said the government has brought constructive changes in the budget for the housing sector which will help the sector to flourish.