Realtors have urged the government to continue allowing investment of undisclosed money in real estate to help the industry grow.
They observed that the proposed national budget for the fiscal year 2022-23 will hold back growth in the housing and construction sector unless the provision of investing undisclosed money remains in place.
However, continuation of investment of undisclosed money will be a respite for the sector, REHAB President Alamgir Shamsul Alamin said on Saturday.
Speaking at a post-budget press meet, Real Estate and Housing Association of Bangladesh President Alamgir Shamsul Alamin said Tk20,600 crore was whitened in FY21 and the amount would rise to Tk50,000 crore if the government continues the amnesty for black money.
He believes the sector will be able to play a productive role in the government's revenue earning if its demands are met.
Alamin made the call at a press conference on the proposed budget for FY23.
In the pre-budget proposal, the association had also demanded keeping the provision of legalizing undisclosed money.
The budget for FY21 had allowed undisclosed money holders to invest it in the capital market, cash, fixed deposits, and land-flat with a 10% tax.
Later, the facility continued for FY22 with an additional 5% fine.
The REHAB president said the cost of various raw materials, including rod, and lift, will increase in the next fiscal year because of the rise in value- added tax and customs tariff.
The National Board of Revenue (NBR) proposed raising the indirect tax by Tk200 per tonne at the manufacturing level of billet and rod.
After the increase, the rate of VAT on the manufacturing of billet will rise 20% from Tk1,000 to Tk1,200 per tonne.
Consequently, prices of rod will increase affecting the home builders, said Alamin.
He called upon the government to provide proper policy support for the real estate sector's development.
He said land and flat registration costs should be reduced.
The country will be able to reach the growth target for gross domestic product if the manufacturing sector, including the housing sector, remains dynamic, he added.