The housing sector will be worst affected, if 15 percent VAT is imposed on prices of flats, said REHAB.
Real Estate and Housing Association of Bangladesh (REHAB) expressed deep concern over the government’s plan to impose 15 percent VAT on the sector.
The real estate trade body expressed its reaction to the proposed budget announced this month showing 15 percent VAT on housing sector at Hotel Pan Pacific Sonargaon on Saturday.
REHAB Senior Vice-president Nurun Nabi Chowdhury Shaon MP and its other leaders were present there.
Alamgir Shamsul Alamin, president of REHAB, said the housing sector will be worst affected by the new VAT regime.
If the VAT jumps from existing 1.5-4 percent to 15 percent, the housing sector will be put on knife-edge, he said.
“Housing is the sector which will be affected most by the new VAT regime. Sale of flats will shrink significantly due to it,” he added.
REHAB leaders alleged that various taxes and adverse policy of the government have taken a heavy toll on the sector. Sales of the sector have marked a fall by 80 percent. Against this backdrop, housing entrepreneurs started terminating its employees few years back.
It was learnt that many people are losing interest to buy flats for high registration fees.
Earlier, demand made by REHAB to refinance Tk 20,000 crore as housing loan has been reflected in the proposed budget for financial year 2017-18.
The housing sector will also be affected by imposition of Tk 900 VAT on per ton of road, one of the major raw materials used in the construction work.