Proposed budget to push real estate sector into abyss: REHAB

The Real Estate and Housing Association of Bangladesh (REHAB) yesterday said the budget for the 2016-17 will push the country's real estate sector towards a state of further disarray.
“With the changes in tax structure in line with the budget proposal, the construction of housing - a basic right of people - will go up,” said the association during a post budget press conference at a hotel.
The REHAB president Alamgir Shamsul Alamin said that they have submitted a 13 point recommendation in a pre-budget meeting with National Board of Revenue (NBR). “None of those recommendations were implemented. Next time, we will think twice before sitting in such futile pre-budget meeting with NBR,” he said.
Alamin said that they had urged the government not to question the source of an individual's undisclosed income to invest in real estate. “The government has granted that provision with a condition that a ‘certain’ organisation will have the right to question about undisclosed money. Such provision practically nullifies the scope of whitening black money in the real estate sector.” REHAB that has around 1,200 members argued that money is flowing abroad to enjoy the scope of a 'second home' programme offered by various countries.
We have also asked to reduce the taxes on flats and plot registrations and duty-benefits to import firefighting equipment for apartments and commercial buildings but the proposed budget of 2016-17 fiscal did not have any reflection of our demand.
Alamin said that the proposed tax structure of the 2016-17 fiscal will adversely affect most the mid-income and lower-mid income groups of people. “It has narrowed down to scope of people’s investment with high taxes on investment.”
In their recommendation, REHAB sought a government initiative to form a national committee soon to resolve the problems the sector now facing.
“That committee must have government high ups to resolve issue in quickest possible time.”
He also demanded a stimulus package to help grow the sector overcoming the challenges apart from introducing tax holiday for five and 10 years respectively in cities and outside cities.
It is urgent to reintroduce the refinancing scheme with a single digit interest rate and formation of a long-term fund by the Bangladesh Bank to help lower and middle-income groups avail of housing facilities, said REHAB in its recommendation.
Other REHAB leaders, including its Senior Vice President Nurunnobi Chowdhury Shaon, First Vice President  Liakat Ali Bhuiyan and Second Vice President Md Ahkam Ullah were present.

Proposed budget to push real estate sector into abyss: REHAB

The Real Estate and Housing Association of Bangladesh (REHAB) yesterday said the budget for the 2016-17 will push the countrys real estate sector towards a state of further disarray. With the changes in tax structure in line with the budget proposal, the construction of housing - a basic right of people - will go up, said the association during a post budget press conference at a hotel. The REHAB president Alamgir Shamsul Alamin said that they have submitted a 13 point recommendation in a pre-budget meeting with National Board of Revenue (NBR). None of those recommendations were implemented. Next time, we will think twice before sitting in such futile pre-budget meeting with NBR, he said. Alamin said that they had urged the government not to question the source of an individuals undisclosed income to invest in real estate. The government has granted that provision with a condition that a certain organisation will have the right to question about undisclosed money. Such provision practically nullifies the scope of whitening black money in the real estate sector. REHAB that has around 1,200 members argued that money is flowing abroad to enjoy the scope of a second home programme offered by various countries. We have also asked to reduce the taxes on flats and plot registrations and duty-benefits to import firefighting equipment for apartments and commercial buildings but the proposed budget of 2016-17 fiscal did not have any reflection of our demand. Alamin said that the proposed tax structure of the 2016-17 fiscal will adversely affect most the mid-income and lower-mid income groups of people. It has narrowed down to scope of peoples investment with high taxes on investment. In their recommendation, REHAB sought a government initiative to form a national committee soon to resolve the problems the sector now facing. That committee must have government high ups to resolve issue in quickest possible time. He also demanded a stimulus package to help grow the sector overcoming the challenges apart from introducing tax holiday for five and 10 years respectively in cities and outside cities. It is urgent to reintroduce the refinancing scheme with a single digit interest rate and formation of a long-term fund by the Bangladesh Bank to help lower and middle-income groups avail of housing facilities, said REHAB in its recommendation. Other REHAB leaders, including its Senior Vice President Nurunnobi Chowdhury Shaon, First Vice President Liakat Ali Bhuiyan and Second Vice President Md Ahkam Ullah were present.