Real Estate and Housing Association of Bangladesh (REHAB) urged the National Board of Revenue (NBR) to allow legalising the black money with indemnity for the country’s housing sector as it fell into trouble due to the political unrest.
It made the call at a pre-budget meeting with the NBR in the city yesterday. NBR chairman Md Nojibur Rahman chaired the meeting.
“Many REHAB members are now unable to pay the staff salaries. You people (NBR) need to give special attention to the sector,” said REHAB president Alamgir Shamsul Alamin.
He said: “We have received the opportunity to whiten the undisclosed money in the housing sector in last budget. The facility was not utilised properly as there was no indemnity.”
He called for the facility for next 5-10 years in the sector with indemnity by amending section 19bbb in the Income Tax Ordinance.
Earlier in the Finance Bill 2014, the government had allowed people to use black money for the purchase of flats paying a certain amount of tax for per square metre.
According to a 2011 study endorsed by the Finance Ministry, the black money accounted for 62.75% of the total GDP in 2009, while it accounted for only 7% of the GDP in 1973.
The REHAB also proposed the NBR setting the gain tax at 2% from the existing 4%, stamp duty at 1.5% from current 3%, registration fee at 1% from 2%, local government tax at 1% from 2%, and value-added tax in registration of plots and flats at 1.5% from 3%.
The other demands included reduction of income tax on transfer of per square metre residential lands, buildings and apartments to Tk1,300, Tk1,250 and Tk300 respectively from Tk1,600, Tk1,500 and Tk600 for the areas divided in three different categories.
The REHAB also proposed to reduce tax on transfer of commercial lands, buildings and apartments to Tk4,000, Tk.2,500 and Tk800 respectively from existing Tk6,5000, Tk5,000 and Tk1,600 for the three different categories.
It also recommended that the government should allow import of duty-free fire safety machinery.
The association urged the NBR chairman to attend a function, to be organised by the REHAB on a coming day and provide orientation and advices on tax-related issues to all members of 400 industries that are linked with the housing sector.
NBR chairman said the taxmen will go and visit the offices to check whether businesses are paying custom duties, VAT, and income tax properly.
“Inspectors will also ask about whether you have TIN or other documents or not. Please assist them during their visits,” he added.
