Budget disappoints REHAB

Claiming that the proposed national budget for the 2022-23 fiscal year will slow down the speed of the real estate sector’s development, the Real Estate & Housing Association of Bangladesh (REHAB) has expressed “dissatisfaction and disappoint” not meeting its demands in the budget.

“We found there is nothing for us in the budget despite skyrocketing prices of construction materials. So, we are very dissatisfied and disappointed. We called for allowing investment of undisclosed money in real estate to flourish the sector but the demand was ignored,” REHAB vice-president Kamal Mahmud told The Business Post.

According to the Finance Bill 2022-23, the sector of 19AAAAA under ordinance XXXVI of 1984 has been withdrawn where undisclosed money was legalised in the 2020-21 fiscal year to bring more investment in the real estate sector.

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 the 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.