Realtors for inclusion of tax officials in realising money

Realtors have urged the government to include tax officials to realise tax at source on the amount of land development signing money as proposed in the budget for the fiscal year (FY) 2015-16.
The government in the proposed budget for FY 2015-16 has suggested imposition of 15 per cent tax at source on land development signing money.     
According to the new law the land owner must pay 15 per cent tax at source of signing money of any land development deal with the real estate/land developers anywhere in the country.
The tax at source on signing money on land development deal must be deposited by the land developers to the government exchequer.
The provision has been introduced following the inclusion of a new article (53 P) of income tax ordinance to realise the money from the land owners. This will come into effect from the next fiscal.
"We welcome the government move. We urge the government to include tax officials along with us in realising the tax at source on the total amount of signing money for land development," General Secretary of the Real Estate and Housing Association of Bangladesh (REHAB) Md Wahiduzzaman told the FE.
If a land owner signs a deal with a real estate developer for land development and gets Tk 10 million as signing money of the deal, then the 15 per cent of the total amount must be deposited to the government fund by the developers, he said.     
He also said 10,000 to 12,000 ready flats are yet to be sold. The sector transacts some Tk 25 to 28 billion annually.
He suggested that the government should take up a long-term policy to create a revolving fund to facilitate the customers to purchase flats.
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