Realtors yesterday said the proposed national budget for 2017-18 fiscal year is not friendly for the country’s real estate sector as it will face a debacle if the new VAT law is implemented, reports UNB. “The 15 per cent VAT on the purchase of flats and plots will leave dire negative impact on the sector, said president of Real Estate and Housing Association of Bangladesh (Rehab) Alamgir Shamsul Alamin at a press conference in a city hotel.
Rehab its senior vice president Nurun Nabi Chowdhury (Shaon) MP, vice president Liakat Ali Bhuiyan, its directors Kamal Mahud, Md Jahir Ahmed and Al Amin, among others, were present. The Rehab president earlier the VAT on flat is now on average 3 per cent (1.5 per cent-4.5 per cent), which is going to increase at 15 per cent in the upcoming fiscal year, which will invite negative impacts for the real estate sector.
Noting that the sale of flat and plot declined by 80 per cent in the country, he said there is no reflection of any demand of Rehab in the proposed budget announced by the Finance Minister in Parliament on June 2 last.
Nurun Nabi Chowdhury MP said following imposition of additional tax in the proposed budget, the prices of five construction materials -rod, cement, brick, stone and sand will go up which would invite a dire consequence for the sector. Claiming there are two crore people are directly or indirectly engaged in the real estate sector, the Rehab leaders demanded that the new VAT law should not be enforced in the sector for the sake of development of the country.