Keep advance income tax at pre-budget rate
Wednesday, 3 November 2010
FE Report
The Real Estate and Housing Association of Bangladesh (REHAB) has demanded to keep the advance income tax at source at the previous rate as the housing sector is facing setback because of the higher tax rate.
The government has increased the tax from the previous rate of Tk 250 per sq metre to Tk 2,000 per sq metre in the 2010-2011 budget.
"We demand that the government keep the advance income tax at source at the pre-budget rate, that is Tk 250 per sq metre," said President of the association Nasrul Hamid at a press conference on REHAB Vision Fair 2010 at the National Press Club Tuesday.
He also said the cost of end users has gone up as the registration fee has become Tk 180,000 (one lakh 80 thousand) from the previous amount of Tk 23,000.
Hamid said the government has been deprived of revenue collection as a result of this hike as no new registration of flat or building is taking place.
"The government is being deprived of revenue earning and the ownership or handover is getting uncertain," said Hamid, also a member of the parliamentary standing committee on ministry of works.
He said people are losing interest to invest in housing sector because of the prevailing uncertainty, global economic recession, lack of insightful law and policy and planning.
Mr Hamid said the sector is gradually getting disastrous which may put the huge number of skilled and unskilled workers unemployed, adding "many factors are hampering the activities of the developers including the continued trend of hike in land price, lack of coordination among the various service authorities, abnormal price hike of construction materials, high rate of bank loans and above all, the lengthy process of approving building designs."
He urged the government to continue the special house refinancing programme of Bangladesh Bank for the mid and low income people at a low interest rate and with a long repayment schedule.
"The government had an allocation of Tk 7 billion (700 crore) in the 2009-10 budget which has become Tk 720 million in the current budget. Earlier there was six per cent interest rate. But we now want an allocation of Tk 20 billion at three per cent interest with 30 years' repayment schedule," said Nasrul Hamid.
He called upon the government and the financing organisations to come forward to the help of housing sector to solve people's habitation problem.
The central bank launched the refinancing scheme initially with Tk 3.0 billion for housing loan in fiscal 2007-08 which was later increased to Tk 7.0 billion.
The five-day fair, which will kick off on 4 November next at the trade fair ground at Agargaon, is expected to be inaugurated by Prime Minister Sheikh Hasina while State Minister for Housing and Public Works Abdul Mannan will be present as the special guest.
A total of 306 stalls will be there in the fair along with 23 co-sponsor organisations taking part. The fair will remain open for visitors for a one-time entry fee of Tk 50 from 2:00 pm till 9:00 pm on 4 November.
From 5 to 8 November the schedule will be from 10:00 am till 9:00 pm.
The closing ceremony of the REHAB Vision Fair 2010 will be held at Bangabandhu International Conference Centre on 13 November at 7:00 pm.
REHAB Senior Vice-President and chairperson of the fair Sultana Shaheda Islam, REHAB Vice-Presidents Abdur Rahim Khan and Sayeed Nazrul Bidyut and General Secretary Murad Iqbal Choudhury were also present at the press conference.
The Real Estate and Housing Association of Bangladesh (REHAB) has demanded to keep the advance income tax at source at the previous rate as the housing sector is facing setback because of the higher tax rate.
The government has increased the tax from the previous rate of Tk 250 per sq metre to Tk 2,000 per sq metre in the 2010-2011 budget.
"We demand that the government keep the advance income tax at source at the pre-budget rate, that is Tk 250 per sq metre," said President of the association Nasrul Hamid at a press conference on REHAB Vision Fair 2010 at the National Press Club Tuesday.
He also said the cost of end users has gone up as the registration fee has become Tk 180,000 (one lakh 80 thousand) from the previous amount of Tk 23,000.
Hamid said the government has been deprived of revenue collection as a result of this hike as no new registration of flat or building is taking place.
"The government is being deprived of revenue earning and the ownership or handover is getting uncertain," said Hamid, also a member of the parliamentary standing committee on ministry of works.
He said people are losing interest to invest in housing sector because of the prevailing uncertainty, global economic recession, lack of insightful law and policy and planning.
Mr Hamid said the sector is gradually getting disastrous which may put the huge number of skilled and unskilled workers unemployed, adding "many factors are hampering the activities of the developers including the continued trend of hike in land price, lack of coordination among the various service authorities, abnormal price hike of construction materials, high rate of bank loans and above all, the lengthy process of approving building designs."
He urged the government to continue the special house refinancing programme of Bangladesh Bank for the mid and low income people at a low interest rate and with a long repayment schedule.
"The government had an allocation of Tk 7 billion (700 crore) in the 2009-10 budget which has become Tk 720 million in the current budget. Earlier there was six per cent interest rate. But we now want an allocation of Tk 20 billion at three per cent interest with 30 years' repayment schedule," said Nasrul Hamid.
He called upon the government and the financing organisations to come forward to the help of housing sector to solve people's habitation problem.
The central bank launched the refinancing scheme initially with Tk 3.0 billion for housing loan in fiscal 2007-08 which was later increased to Tk 7.0 billion.
The five-day fair, which will kick off on 4 November next at the trade fair ground at Agargaon, is expected to be inaugurated by Prime Minister Sheikh Hasina while State Minister for Housing and Public Works Abdul Mannan will be present as the special guest.
A total of 306 stalls will be there in the fair along with 23 co-sponsor organisations taking part. The fair will remain open for visitors for a one-time entry fee of Tk 50 from 2:00 pm till 9:00 pm on 4 November.
From 5 to 8 November the schedule will be from 10:00 am till 9:00 pm.
The closing ceremony of the REHAB Vision Fair 2010 will be held at Bangabandhu International Conference Centre on 13 November at 7:00 pm.
REHAB Senior Vice-President and chairperson of the fair Sultana Shaheda Islam, REHAB Vice-Presidents Abdur Rahim Khan and Sayeed Nazrul Bidyut and General Secretary Murad Iqbal Choudhury were also present at the press conference.