Leaders of Real Estate and Housing Association of Bangladesh (REHAB) have said the decision to allow undisclosedmoney in the housing sector will help bring back vibrancy in the sector though the experts are opposing it saying it will be unethical.
“Surely, it’ll help make the sector vibrant again. It’ll help generate more revenue and thus play an important role in the economy,” general secretary of REHAB M Wahiduzzaman told UNB on Wednesday.
About TIB’s stance against black money whitening and economists’ opposition to it, he said, “There are many people who say that. But you need to think of how the economy will be benefitted.”
Responding to a question, Wahiduzzaman said if the government allows undisclosedmoney in the housing sector, it will help increase the sales volume of both plots and apartments.
“But it’ll take time to increase the price of plots and apartments, market will gradually become vibrant,” he said.
He claimed that REHAB will play its role in helping the National Board of Revenue (NBR) to realise due tax from this sector.
Wahiduzzaman said if the housing sector collapses, many related sectors like rods, cement, fans, lightings, power cables, furniture and others will be destroyed ultimately having an adverse effect on the overall economy.
President of REHAB’s Chittagong unit Mohammad Kaiuam said they are still unsure of the provision.
“We’re expecting such a scope in the coming budget. It seems that the provision won’t be the way we’re expecting,” he said.
He said they will replace their demands if the decision is not satisfactory, since they have time until the budget is passed.
Earlier, REHAB leaders demanded the NBR to allow the investment of undisclosed money in the housing sector saying a huge amount of money will be siphoned off unless the government reinstates the provision.
To purchase a house or flat, one now needs to explain the source of the investment. The tax rates per square metre range from Tk800 and Tk2,000, subject to the location.
Now the government is planning to allow the purchase and construction of a house or flat without raising any question about the source of the money.
The government has also been considering fixing taxes on the purchase value of a plot at 10%.
Meanwhile, Transparency International Bangladesh (TIB) has said the government’s plan to allow whitening of black money in the housing sector is discriminatory and it goes against the constitution as it will send out a message of ‘immorality’ in society.
“If the government allows black money in the next budget in the housing sector, it will be discriminatory and is in no way acceptable. It is constitutionally illegal and ethically unacceptable,” TIB executive director DrIftekharuzzaman said.
Leading economists have always been opposing black money whitening options saying it does not bring any benefit to the economy.