Realtors want investment of black money up to 10yrs

The Real Estate and Housing Association of Bangladesh (REHAB) has urged the National Board of Revenue (NBR) to allow investment of undisclosed money in the housing sector with paying a 10 per cent tax.

REHAB vice-chairman Sohel Rana has proposed continuing with such facilities for 5-10 years aimed at boosting national resources and promoting the economic growth. 

The association made the proposal during a pre-budget discussion for FY24 organised by the NBR at Rajaswa Bhaban in the capital’s Agargaon on Tuesday which was presided over by NBR Chairman Abu Hena Md Rahmatul Muneem.

The discussion was held between NBR and REHAB, Bangladesh Tanners Association (BTA) and Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA).

In response to the proposal, Muneem said, “You demand to continue the facility for at least five years. Then black money would continue to enter the economy and the people would continue to buy houses.”

“Are you encouraging the injection of black money into the economy as citizens?” he questioned over the demand made by the association. “This is simply not right, particularly when you want me to keep on the demand for five years,” he added.

REHAB also proposed fixing the tax rate at 3.5 per cent to bolster the secondary market in this sector, reducing VAT by one-third and cutting source tax on the land owners from 15 per cent to 4 per cent.

However, BCMEA proposed that NBR withdraw existing 15 per cent SD on local tiles and 10 per cent on local sanitary goods to ensure sanitation for all and promote the local industry.

The association proposed to consider the system loss as 35 per cent, including moisture in determining the coefficient for product price declaration.

The association leaders said they cannot produce anything without smooth gas supply. Even currently the gas price is increased. If the revenue board meets their demand, the sector will be saved, they added.

On the other hand, BTA urged the revenue board to reduce VAT from 15 per cent to 7.5 per cent on essential chemical imports required for leather processing and fix import duty at 3 per cent from existing 5 per cent for non-bonded tanneries.

The facility will benefit the small and medium-sized enterprises (SMEs) and boost the local production, they said.

The revenue board chairman said, “We are working to curb leakage and ensure automation. Then we can increase the bonded facility that will help our small enterprises to make them exporters.”