REHAB demands low-cost fund

The Real Estate and Housing Association of Bangladesh (REHAB) has demanded the provision of a long-term low interest fund in the proposed national budget for fiscal 2021-22 so that the country's people can purchase their own homes on instalments equivalent to rent.

In a statement to the media issued yesterday, the trade body said there is scope to reduce registration costs in the local housing sector further when compared to other countries.

So, REHAB hopes that the government will implement this and other demands in the future, it added.

REHAB believes that Bangladesh will go a long way towards achieving its goals by implementing a well-thought-out budget amid the ongoing Covid-19 pandemic.

The association of real estate developers also welcomed the move to waive special tax and duty on various construction materials, such as rods, cement, and tiles, in the proposed budget.

At the same time, if the government continues to allow the use of undisclosed income for the purchase of flats and apartments, it will play a fruitful role in the sector and help increase internal resources, it said.

According to government estimates, more than Tk 14,000 crore in undisclosed income has been legalised so far this fiscal year, from which the government has received about Tk 1,500 crore in revenue.

This has played an effective role in reviving the economy amid the current crisis.

"So, we firmly believe that if this policy continues, more money will be added to the mainstream economy, which will help increase revenues," REHAB said in its statement.

Besides, the proposed budget has reduced corporate and annual turnover tax rates, which is very positive, it added.

"We have been working relentlessly as a development partner of the government for a long time. In all, about 50 lakh manpower is involved in the entire construction sector while the backward linkage industries have kept our economy afloat," it said.

According to the association, about Tk 100,000 crore is directly and indirectly deposited in the government treasury from the real estate sector every year by combining different sectors and sub-sectors.

Therefore, special importance should be given to this sector, it added.