Buyers of flats and commercial spaces are likely to face increased expenses as the government plans to raise the value-added tax (VAT) on services provided by construction companies.
The VAT rate on construction services is set to increase to 10% in the 2025-26 fiscal year, up from 7.5% in the current fiscal year.
In addition, a rise in the specific VAT on steel rods is expected to further drive up construction costs, potentially pushing up overall property prices.
Finance Adviser Dr Salehuddin Ahmed presented the proposed budget for the 2025-2026 fiscal year, amounting to Tk7,89,999 crore, in a televised speech on Monday.