|Published : 13 Apr 2017, 00:32:01 | Updated : 13 Apr 2017, 13:47:10|
Realtors seek Tk 20b refinancing fund at single-digit interest rate
Plead for allowing investment of undisclosed income
The country's realtors have sought a refinancing fund of Tk 20 billion at single digit interest rate in the next budget for the fiscal year (FY) 2017-18 to help revive the sluggish housing sector.
They also proposed reduction of registration-related tax and fees from the existing 14 per cent to 7.0 per cent and lowering of Value Added Tax (VAT).
The Real Estate and Housing Association of Bangladesh (REHAB) recently sent its proposals to the National Board of Revenue (NBR) for incorporation in the upcoming budget.
The realtors also sought necessary amendment to the Section 19 (B) of the Income Tax Ordinance-1984 to allow investment of undisclosed money in the real estate sector.
Other proposals include reduction of income tax of real estate entrepreneurs, increased flow of loans and introduction of special loan for under-construction projects.
They also demanded nominal registration fees for the secondary market of the real estate sector.
The realtors said their sales have declined by at least 60 per cent. The rate of new projects also has dropped by 75 per cent.
Liquidity crisis and capital expenditures of the sector are increasing at a geometric rate because of shrinking loans by banks and financial institutions.
They said although the sector started to turn around to some extent after 'REHAB Winter Fair 2016, the realtors could not tap the opportunities because of unavailability of loans.
If the sector does not get necessary support, it will face a major setback in future, they said.
The REHAB members sell about 17,000 flats a year. Of the total buyers, one-third are expatriate Bangladeshis. Nearly 1,130 developer companies operate under the REHAB employing nearly three million people.