Staff Reporter :
The realtors on Saturday urged the government to lessen condominiums’ registration fee to 2-3 percent of their prices instead of the current 12.5 percent to encourage people show the actual prices of land or apartment.
They placed their demand at a press conference while presenting their budget reaction before the media at a city hotel.
Alamgir Shamsul Alamin, President of the Real Estate and Housing Association of Bangladesh (REHAB), argued that customers conceal the actual prices of the apartments because of what he said was a higher registration fee.
He said currently registration cost comprises 10 percent to 12.5 percent of the total apartment price.
If the registration fee goes lower to 2 to 3 percent, the clients will feel encouraged to expose the real price of the piece of land and flats they are purchasing.
He hoped such a crucial measure will help all to stay straightforward with their asset’s market price.
“So, unexposed black money will decline gradually in the system,” he said.
Finance Minister AHM Mustafa Kamal, on June 9 placed the proposed budget for fiscal 2022-2023 in the parliament and said the housing sector has been producing black money in the economy.
Regarding the recent remarks of the finance minister over the blackening of money by the land and flat owners, the REHAB president said, “Yes, during an exchange of the property, people show lower prices than the actual ones because of the high registration cost. If the cost is set to 3 percent, customers will expose the actual price eagerly. The government also will get the revenue.”
While dwelling on sales of used apartments, he said the clients will be more interested to invest if the registration fee is lessened.
The REHAB also sought investment facilities for black money without question.
Expressing concern over the laundered money, Alamgir also said, “We have laws on bringing back the drained money but we have to be strict first so that money can’t be siphoned off.”
He said in FY21 when black money was permitted to invest in the country, the housing sector attracted some Tk 20,000 crore as an investment. If the facility continues, more than Tk 50,000 crore could be invested here, he projected.
Citing examples of various tax hikes, he said lift tax has been increased by 19 percent, import tax of raw materials by 5 percent, VAT 15 percent AIT 5 percent, and AT 5 percent, respectively. He said summing up all import tax has been increased by 30 percent which will push the prices of the condominiums.
“So, chances remain to generate black money here,” he added.
To facilitate the housing industry, he said single-digit interest on housing loans is a must so that middle-class people buy more apartments and live in their own homes.
REHAB Senior Vice President Enthekhabul Hamid and Vice President (first) Kamal Mahmud were also present at the press conference.
