REHAB urges government to allow investment of undisclosed money in real estate sector

| Updated:
Jun 19, 2022 6:47:16 p.m.

Estate agents have urged the government to continue allowing undisclosed money to be invested in real estate to help the sector thrive unhindered.

They observed that the proposed national budget for the financial year 2022-23 will dampen growth in the housing and construction sector unless the provision to invest undisclosed money remains in place.

“However, continued investment of undisclosed money will be a respite for the sector,” REHAB Chairman Alamgir Shamsul Alamin said on Saturday.

The Minister of Finance, in his last budget speech, did not propose to continue the black money amnesty in the sector.

Speaking at a post-budget press conference, Bangladesh Property and Housing Association Chairman Alamgir Shamsul Alamin said Tk 206 billion was laundered in the financial year 2020-21 and that the amount would increase to Tk 500 billion if the government pursues the black money amnesty.

He believes the sector can play a productive role in government revenue if its demands are met.

Alamin made the call during a press conference on the proposed budget for the 2022-23 fiscal year at a hotel in the city.

In the pre-budget proposal, the association had also demanded that the undisclosed money legalization provision be maintained.

The budget for the fiscal year 2020-21 had allowed holders of undisclosed funds to invest it in capital market, cash, fixed deposits and land with a 10% tax. Later, the installation continued for fiscal year 22 with more than 5% fine.

The REHAB chairman said that the cost of various raw materials, including rods and elevators, will increase in the next fiscal year due to higher value-added tax and tariffs.

The National Revenue Board (NBR) has proposed to increase the excise tax by 200 taka per ton on the manufacture of billets and rods.

After the increase, the VAT rate on the manufacture of billets will increase by 20% from Tk 1,000 to Tk 1,200 per ton.

“As a result, rod prices will rise, affecting homebuilders,” Alamin said.

He called on the government to provide appropriate policy support for the development of the real estate sector.

He said land and apartment registration costs should be reduced.

The country can achieve the gross domestic product growth target if the manufacturing sector, including the housing sector, remains vibrant, he added.

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