Govt urged to waive taxes on undisclosed income if invested in real estate sector
FE Report | Sunday, 15 June 2008
Realtors have urged the government to waive taxes on undisclosed income if invested in the country's real estate sector.
The country's leading real estate developers were discussing at a round table meeting held at the National Press Club Saturday on the proposed budget for 2008-09.
"Government should withdraw taxes on the undisclosed money as such a step will give fresh momentum to our sector," said Anisur Rahman, managing director of South Breeze House Limited.
"The process of investing undisclosed money into the real estate sector should be made easy," said FR Khan, said managing director Asset Development Limited.
Real Estate and Housing Association of Bangladesh (REHAB) and Shaptahik, a vernacular weekly jointly organised the round table.
Editor of Shaptahik Golam Mortoza was the moderator at the programme while eminent lawyer Dr Kamal Hossain was chief guest.
President of REHAB Tanveerul Hoque Probal presented a paper on the proposed budget for 2008-09 recommending ways to overcome the crisis in the housing sector.
REHAB president in his paper demanded for the reduction of bank interest rates adding: "We think bank interest rate should be fixed between 5.0 and 7.0 per cent for the smooth growth of the sector."
Government has formed a fund worth Tk 3.0 billion to provide housing loan to the middle income group but REHAB president alleged that the group had failed to get loan from the fund following stern conditions incorporated in it.
He proposed that government should make different categories based on the income of the aspirant apartment buyers.
"I propose a category for the income group whose monthly earnings ranges between Tk 10,000 and Tk 20,000, another between Tk 30,000 and Tk 40,000 to be eligible for the loans for the middle class," REHAB president added.
REHAB president stressed the need for the formation of a secondary market for the sector adding: "Transfer and registration cost for the old flats and commercials buildings should be fixed at 1.50 per cent to develop a secondary market."
Tanveer said existing income tax relating to the registration and other costs should be reduced by 50 percent for Dhaka and Chittagong cities.
He also proposed to fix income tax at Tk 50 per square metre for smaller sized apartments not exceeding 100 square metres to facilitate middle-income buyers.
He said government should withdraw value added tax imposed on the sector for the time being considering the slump being experienced by the sector.
Addressing the round table, Dr Kamal Hossain said realtors should meet with those politicians who were accountable and transparent on their duties as the problems being faced by the sector can only be solved by an elected government .
He said the sector needs long term strategy and those can be met by the 'real politicians' adding : "We should not go to the corrupt politicians.
He also said there should be a law to refrain from boycotting the parliament by its elected members especially when the national budget is placed.
Lieutenant General (retd) Mahbubur Rahman said realtors should construct apartments outside Dhaka as the city has already become too crowdy.
Lieutenant Colonel (retd) Faruk Khan urged the realtors to construct apartments in the districts towns.
"You (realtors) need long, short and mid term planning to bring rural areas under modern apartment living system," he said.
He said realtors should prepare a paper for the politicians who will lead the country after a few months.
Editor of Amader Somoi Naimul Islam Khan said Rehab should establish a research cell for getting accurate information on the sector.
Professor of the Department of the Architecture of North South University Mahbubur Rahman suggested that country's realtors might establish a financial institution to provide long term loan for the housing sector.
Executive director of Swadesh, a real estate company, said the existing law relating to the land development and apartments should be amended as these laws have been creating different problems for the sector.
REHAB General Secretary Jewell Molla, Jahid Hossain of Union Developers, Abdur Rahim Khan of Index Developers, SM Asaduzzaman of Organ Developers also spoke at the programme.
The country's leading real estate developers were discussing at a round table meeting held at the National Press Club Saturday on the proposed budget for 2008-09.
"Government should withdraw taxes on the undisclosed money as such a step will give fresh momentum to our sector," said Anisur Rahman, managing director of South Breeze House Limited.
"The process of investing undisclosed money into the real estate sector should be made easy," said FR Khan, said managing director Asset Development Limited.
Real Estate and Housing Association of Bangladesh (REHAB) and Shaptahik, a vernacular weekly jointly organised the round table.
Editor of Shaptahik Golam Mortoza was the moderator at the programme while eminent lawyer Dr Kamal Hossain was chief guest.
President of REHAB Tanveerul Hoque Probal presented a paper on the proposed budget for 2008-09 recommending ways to overcome the crisis in the housing sector.
REHAB president in his paper demanded for the reduction of bank interest rates adding: "We think bank interest rate should be fixed between 5.0 and 7.0 per cent for the smooth growth of the sector."
Government has formed a fund worth Tk 3.0 billion to provide housing loan to the middle income group but REHAB president alleged that the group had failed to get loan from the fund following stern conditions incorporated in it.
He proposed that government should make different categories based on the income of the aspirant apartment buyers.
"I propose a category for the income group whose monthly earnings ranges between Tk 10,000 and Tk 20,000, another between Tk 30,000 and Tk 40,000 to be eligible for the loans for the middle class," REHAB president added.
REHAB president stressed the need for the formation of a secondary market for the sector adding: "Transfer and registration cost for the old flats and commercials buildings should be fixed at 1.50 per cent to develop a secondary market."
Tanveer said existing income tax relating to the registration and other costs should be reduced by 50 percent for Dhaka and Chittagong cities.
He also proposed to fix income tax at Tk 50 per square metre for smaller sized apartments not exceeding 100 square metres to facilitate middle-income buyers.
He said government should withdraw value added tax imposed on the sector for the time being considering the slump being experienced by the sector.
Addressing the round table, Dr Kamal Hossain said realtors should meet with those politicians who were accountable and transparent on their duties as the problems being faced by the sector can only be solved by an elected government .
He said the sector needs long term strategy and those can be met by the 'real politicians' adding : "We should not go to the corrupt politicians.
He also said there should be a law to refrain from boycotting the parliament by its elected members especially when the national budget is placed.
Lieutenant General (retd) Mahbubur Rahman said realtors should construct apartments outside Dhaka as the city has already become too crowdy.
Lieutenant Colonel (retd) Faruk Khan urged the realtors to construct apartments in the districts towns.
"You (realtors) need long, short and mid term planning to bring rural areas under modern apartment living system," he said.
He said realtors should prepare a paper for the politicians who will lead the country after a few months.
Editor of Amader Somoi Naimul Islam Khan said Rehab should establish a research cell for getting accurate information on the sector.
Professor of the Department of the Architecture of North South University Mahbubur Rahman suggested that country's realtors might establish a financial institution to provide long term loan for the housing sector.
Executive director of Swadesh, a real estate company, said the existing law relating to the land development and apartments should be amended as these laws have been creating different problems for the sector.
REHAB General Secretary Jewell Molla, Jahid Hossain of Union Developers, Abdur Rahim Khan of Index Developers, SM Asaduzzaman of Organ Developers also spoke at the programme.