Md Joynal Abedin Khan
The Real Estate and Housing Association of Bangladesh sought tax holiday, low-interest loans in the forthcoming budget to combat pandemic-induced losses in the business.
REHAB sported a 10-point demand, including decentralisation of cities, investment of the unauthorised money and facilities of low-interest loans prospective real estate customers.
The trade body also urged the government to launch a secondary market for the housing sector.
The housing association recently placed the written proposals to the Ministry of Finance, National Board of Revenue (NBR) and other government bodies, which are involved with the preparing of the next national budget for Fiscal Year (FY) 2021-22.
The government should introduce the ‘tax holiday’ for five years for metropolitan, municipality and cantonment areas while a 10-year tax holiday for rural areas to expand housing facility which would help the government’s policy of decentralisation, said the proposal released by the REHAB.
The realtors’ association also urged continued policy support for the investment of undisclosed money in housing sector so that the housing business can weather the economic shock of the pandemic.
The government should take initiative for 30-year-long term loans with the highest six per cent to seven per cent interest rate for the low-income people so that they can afford a flat and play a positive role in the business, it added.
The Bangladesh Bank can launch refinancing system and form a fund of Tk 20,000 crore for flat buyers, according to a recent statement released by REHAB.
The apex body of housing business proposed to reduce the collective highest tax and registration fee to 7 per cent from the current 12.5 per cent.
The REHAB also demanded 1.5 per cent VAT down from 4.5 per cent and total exemption of VAT on new projects particularly in the pandemic period, the proposal said.
The business body urged the government to decrease the income tax of realtors by around 33 per cent.
The REHAB also pleaded to authorities concerned to withdraw the present 2 per cent to 3 per cent tax to relax the burden of the coronavirus-beaten housing traders.
The traders also requested the ministry concerned to launch the secondary market system so that businesspeople or flat owners can buy or sell flat or plot, paying 3.5 per cent in registration fee, stamp duty and gain tax.
Kamal Mahmud, Vice President of REHAB told The Business Post, “The housing sector business was severely hit by the coronavirus pandemic and our transaction decreased at least 60 per cent during the period.”
The government should offer some special facilities including reduction of income tax and Value Added Tax to sustain in the business during the virus pandemic.
