Proposed budget will push housing industry towards crisis: REHAB president

Real Estate and Housing Association of Bangladesh (REHAB) President Alamgir Shamsul Alamin (Kajal) has said an increase in income tax at source during land registration, and a new additional tax on various construction materials in the proposed budget will push the country's housing industry towards crisis. "If the proposed budget is not revised, the prices of land and flats will increase in the future. The increased prices will question the slogan of housing for all and the dream of housing for many will become difficult," he said in an immediate budget reaction on Thursday.

The proposed budget has imposed additional duties on cement, stone, tiles, lifts, ceramics, glass, switch sockets, cables, and kitchenware and realtors are the buyers of those construction materials. Finally, the price of these pricier products will fall on the flat buyer, he said.

He fears that if the prices of these products are not kept tolerable, there will be a crisis in the housing industry.

The REHAB president called for a review of the proposed national budget to protect the country's housing industry.

The REHAB President said due to an increase in the price of construction materials, and a decrease in the prices of new DAPs, the sales volume has already decreased. Besides, the sector has gradually come under serious threat due to various taxation and lack of government policy support in this emerging sector.

In this situation, it is impossible to overcome this crisis without the immediate support of the government, Alamgir Shamsul Alamin said.

"At this moment we fear that the increase in taxes on various products will have an adverse effect on the country's economy."

REHAB made various demands related to housing in the pre-budget discussion, but none of them were reflected in the proposed budget. They demanded opportunities for investment of undisclosed money, reduction of registration fees in old flats to strengthen the secondary market system of flats and formation of a special fund.

In the 2020-2021 financial year, Tk20,600 crore has come into the mainstream of the economy due to unquestionable investment opportunities. The government received a revenue of over Tk2,000 crore.

Keeping investment opportunities for undisclosed money will give a good benefit to the economy as well as create new employment and will be easier to deal with the ongoing economic crisis, he added.

BUDGET FY2024 / Bangladesh National Budget 2023-24 / Rehab / Housing industry