Countless low income people in the capital are worried about keeping a roof over their heads as they are now unable to pay house rents being financially hit by the coronavirus pandemic.
Many small house owners, who are solely dependent on the income from their houses, are also in a dilemma, since their tenants are asking for either waiver or reduction of rent based on their financial distress, reports UNB.
Some people have used social media sites to voice their concern over house rent payment, while some others spread fake news saying that the government has waived house rents and postponed utility bill payments for a month, forcing the Prime Minister's Office to issue a statement on Thursday refuting it.
Urban experts and economists have suggested several ways to tackle this situation.
The government could give a grant, or introduce food ration for the low-income people. The authority can also waive the holding and income taxes of the landlords who reduce or fully waive house rent of their tenants.
Nurul Alam, a street vendor, lives in a tin-shed house, where the monthly rent is Tk4,000, with his family in the capital’s Rampur area.
"I used to earn Tk300-400 every day by selling various cosmetic items in front of Anarkoli Market in Mouchak. But I do not have any income for the last 10 days,” he said.
“I am finding it difficult to support my family. On top of that, my landlord is pressuring me every day to pay the rent. I do not know how I will pay the rent and buy food for my family,” he bemoaned.
Tea seller Selim Mia in the Shantibag area is even in a worse situation as he has to pay the rents for both his house and stall.
"I cannot earn any money because the law enforcement agencies do not allow me to open my tea stall. I have to pay my house owner Tk5,000 and the tea stall owner Tk4,000. But I do not have any money. My family will starve if the current situation continues,” he said.
Rickshaw-van puller Ismail who lives in a slum with five other family members near Malibagh Rail Gate is also going through a tough time due to lack of earning.
"I had to spend all the money that I had saved up. My landlord has asked me to leave the house if I cannot pay the Tk4,000 rent. I do not know how I will manage it,” he said looking perplexed.
On the other hand, some of the owners of small houses are also in a predicament.
Abul Kashem, owner of a tin-shed house in the capital’s Khilgaon area, said he gets around Tk20,000 every month from his tenants as rent which is his only source of income.
"My tenants have requested me me to waive the rent, or take it when the situation becomes normal. How will my family survive if I don't get the rent now?” he questioned.
Rickshaw pullers, transport workers, day labourers, hawkers, employees of hotels, restaurants and different shops, construction workers and other low-income people are faced with a similar situation as they have become jobless due to the lockdown.
Bharatia Parisahd, a platform for tenants, in a statement on Thursday, demanded the waiver of three months' house rent as the income sources of around five million low income people in the capital have disappeared.
What the experts have to say
Contacted, former caretaker government finance adviser Dr Mirza Azizul Islam said the poor people of the urban areas are having difficulties over paying house rent since they have no income now.
"It is problematic that our government has no scheme for the urban poor to help them overcome this problem,” said Azizul.
He said the government can provide a grant for the extreme urban poor and day labourers so that they can pay their house rent, at least partially, and buy food for their families.
Azizul said many landlords are solvent who can voluntarily waive or hold off the rent of their helpless tenants until normalcy is restored.
He, however, added that many house owners also do not have the ability to waive the rent as it is their main income source.
Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said nearly four million poor people in the city are without work.
"It is now difficult for them to manage food for their families, let alone paying the house rent,” he added.
"But giving any grant for them is probably not possible for the government right now as it is under serious pressure due to the overall situation of the country,” he commented.
Mustafizur said the National Board of Revenue can waive the income tax and the city authorities can waive the holding tax of landlords so that they can waive house rent of tenants without difficulty.
Urban expert Prof Nazrul Islam said the middle class people will somehow manage the house rent, but it is very difficult for the low income people.
"Usually, poor people pay a small amount of money as house rent, not more than Tk5,000 in most cases. So, an announcement can made saying those who pay rent of up to Tk5,000 will get support from the government under a bailout package like that of the readymade garment (RMG) workers," he added.
