Stakeholders seek tax cut to expand real-estate sector outside cities
Monday, 17 March 2008
FE Report
Stakeholders of the country's construction sector have urged the government to facilitate expansion of the real-estate sector outside any metropolitan city by reducing tax rates.
The government should reduce the tax rate on constructing a building in a semi-urban area compared to the rates applicable for urban areas.
They made the suggestion in a pre-budget discussion with the National Board of Revenue (NBR) in the city Sunday.
Real Estate and Housing Association of Bangladesh (REHAB) general secretary Tanvirul Haque Probal said: 'District cities, outside metropolitan areas, should get some extra tax-exemption facilities for promoting the housing sector in those areas.'
Responding to the demand, NBR Chairman Muhammad Abdul Mazid said: 'The proposal contains merit for being considered by the government. Expansion of the real estate sector outside cities will ease pressure on urban areas.'
He, however, said there should be a difference between the tax rates of urban and semi-urban areas.
Probal also demanded reduction of the Advance Income Tax (AIT) to Tk 150 per square feet from the existing Tk 250, encourage secondary market sale of apartments by reducing VAT on registration fees.
'A number of apartment owners often skip registration due to its higher cost. Presently, 15 per cent VAT is imposed on registration fees of apartments, which should be reduced below 5.0 per cent,' he observed.
Steel Mill Owners Association demanded waiver of customs duty on melting scrap, VAT on MS rod, etc.
Re-rolling Mills Association urged the NBR to set different tax rates on melting and re-rollable steel, which is now 10 per cent for both.
Ahsanul Kabir, BUET professor, who attended the meeting as a guest, said: 'Tax rate should be reduced to a tolerable level. Otherwise, a section of businessmen will cash in on it depriving the consumers.'
Stakeholders of the country's construction sector have urged the government to facilitate expansion of the real-estate sector outside any metropolitan city by reducing tax rates.
The government should reduce the tax rate on constructing a building in a semi-urban area compared to the rates applicable for urban areas.
They made the suggestion in a pre-budget discussion with the National Board of Revenue (NBR) in the city Sunday.
Real Estate and Housing Association of Bangladesh (REHAB) general secretary Tanvirul Haque Probal said: 'District cities, outside metropolitan areas, should get some extra tax-exemption facilities for promoting the housing sector in those areas.'
Responding to the demand, NBR Chairman Muhammad Abdul Mazid said: 'The proposal contains merit for being considered by the government. Expansion of the real estate sector outside cities will ease pressure on urban areas.'
He, however, said there should be a difference between the tax rates of urban and semi-urban areas.
Probal also demanded reduction of the Advance Income Tax (AIT) to Tk 150 per square feet from the existing Tk 250, encourage secondary market sale of apartments by reducing VAT on registration fees.
'A number of apartment owners often skip registration due to its higher cost. Presently, 15 per cent VAT is imposed on registration fees of apartments, which should be reduced below 5.0 per cent,' he observed.
Steel Mill Owners Association demanded waiver of customs duty on melting scrap, VAT on MS rod, etc.
Re-rolling Mills Association urged the NBR to set different tax rates on melting and re-rollable steel, which is now 10 per cent for both.
Ahsanul Kabir, BUET professor, who attended the meeting as a guest, said: 'Tax rate should be reduced to a tolerable level. Otherwise, a section of businessmen will cash in on it depriving the consumers.'