VAT may harm real estate sector | 2017-05-07 |

VAT may harm real estate sector

Sun Online Desk     7th May, 2017 09:02:26 printer

VAT may harm real estate sector

Housing and Public Works Minister Engineer Mosharraf Hossain on Sunday said if 15 per cent VAT is implemented as per the new VAT Act, the country’s real estate sector will face a slowdown.


“There is no example in any country of the world that people will have to provide 15 per cent VAT in all sectors. If tax net is not increased, problems will not be solved by increasing tax,” he said, reports UNB.


The minister came up the remarks while speaking as the chief guest at a roundtable meeting titled “Accommodation Sector in National Economy” held at Dhaka Club in the capital.

Center for Communication Network (CCN) arranged the programme.


He said some 12 lakh out of 16 crore people in the country give tax but the rest are out of the tax net, which cannot be acceptable. “I think, the Ministry of Finance and the National Board of Revenue (NBR) should be tax-friendly more.”


However, the government took a decision to impose 15 percent VAT in all sectors, including apartments, under the new VAT Act and the NBR will implement the new VAT decision from the 2017-18 fiscal year although traders protest against the decision.


State Minister for Finance and Planning MA Mannan said the new VAT decision may create problems for temporary period but it will be good in future.


Over the accommodation, Mosharraf said the Rajuk can provide the facilities of CDA, ADA and RDA in the accommodation sector but the private sector realtors cannot do the same.


Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) First Vice President M Shafiul Islam Mohiuddin urged the government to increase tax net.


Real Estate and Housing Association of Bangladesh (Rehab) president Alamgir Shamsul Alamin (Kajal), Bangladesh Kalyan Party chairman Maj Gen (retd) Syed Muhammad Ibrahim and former NBR chairman Dr Muhammad Abdul Mazid, among others, were present at the programme.