The government has slashed the stamp duty on property registration by half to 1.5 percent of the deed value as part of its efforts to resuscitate the real estate sector that has been struggling for the past few years.
“This is going to have a positive impact,” said Farhaduzzaman, marketing in-charge of Eastern Housing, the country’s first real estate company.
The move by the finance ministry came amid repeated pleas from realtors to cut registration costs of property to give a respite to middle-income families who want to own homes.
Following the tax cut, the total registration cost -- excluding advance income tax -- of flats of up to 1,601 square feet came down to 11.5 percent of the deed value from 13 percent previously.
For bigger apartments, total registration cost would drop to 14 percent, according to the Eastern Housing official.
Muhammad Nazmul Ahsan, senior manager research and compliance department of Sheltech, a leading realtor, welcomed the move.
“Yet, registration cost still remains high -- this should be reduced to single digit,” he added.
The registration cost of land will drop to about 9.5 percent of deed value following stamp duty reduction, said Foredul Islam Bahadur, senior vice-president of Bangladesh Deed Writers Association.