Realtors have demanded reduction in the registration fees for flat and plot, introduction of a secondary market for real estate, and restoration of the provision of whitening undisclosed money in the income tax law for this sector.
They also urged the revenue authority not to impose anew or raise the ceiling of existing value added tax (VAT) on the sale of real estate.
Stakeholders in the real estate sector placed their demands at a pre-budget meeting with the National Board of Revenue (NBR) at its headquarters in the city's Segunbagicha area on Tuesday.
NBR Chairman Md Mosharraf Hossain Bhuiyan presided over the meeting attended by representatives of the Real Estate and Housing Association of Bangladesh (REHAB), Bangladesh Steel Manufacturers Association (BSMA), Bangladesh Cement Manufacturers Association (BCMA), Bangladesh Stainless Steel Pipe Manufacturers Association (BSSPMA), Steel Building Manufacturers Association (SBMA) and Bangladesh Land Developers Association (BLDA).
At the meeting, the REHAB proposed a cut in the registration fees to 7.0 per cent from the existing 14 to 16 per cent, saying that such fees in neighbouring countries range between 4.0 and 7.0 per cent.
It also recommended that the government introduce secondary market for trading flats (not older than five years) and plots with 3.5 per cent tax (re-registration fees).
The realtors demanded restoration of the provision of whitening undisclosed money in the income tax law along with indemnity for the real estate sector.
Considering the current vulnerable situation of the sector and to check money laundering, indemnity for investment of untaxed money in the real estate should be given for at least five to ten years, said REHAB vice president Liakat Ali Bhuiyan.
He also said the section 19B of the Income Tax Ordinance, 1984 should be amended to bring more people under the tax net and stop siphoning off money for the second home schemes of different countries.
The realtors also urged the government to introduce refinancing scheme for the real estate sector and create a Tk 200 billion fund with a view to providing low-cost and long-term housing loans.
To reduce pressure on metropolitan areas, BLDA leaders proposed offering tax holiday for five to ten years to promote planned housing projects outside big cities and in municipality areas.
BSSPMA vice president Md Saifur Rahaman sought bonded warehouse facility in favour of cent per cent bank guarantee, as enjoyed by the garment sector, for exporting goods and furniture made of stainless steel pipes.
In response, the NBR chairman said the revenue authority encourages export diversification and if any potential sector needs such a facility, the authorities concerned will try to provide it.
BSMA vice chairman Zahirul Haque Chowdhury urged the NBR not to implement the proposed 3.0 per cent Advance Trade VAT (ATV) on import of raw materials like ferrous waste and scrap and sponge iron.
Currently, a fixed import duty of Tk 1,500 per metric tonne and Advance Income Tax (AIT) Tk 800 per metric tonne are applicable for these two raw materials, he said.
BCMA president Mostafa Kamal said the country's cement manufacturing sector is entirely dependent on imported raw materials. So, the government should lower VAT rate on clinkers, gypsum, slag and limestone from 15 per cent to 5.0 per cent and AIT from 5.0 per cent to 2.5 per cent on the products.
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