06:04 PM, June 02, 2016 / LAST MODIFIED: 06:13 PM, June 02, 2016

Proposal to reduce withholding tax rates for real estate sector

Finance Minister AMA Muhith on Thursday, June 2, 2016 proposed to reduce withholding tax rates for real estate sector in the 2016-17 fiscal year budget. Star file photo

With a plan to relieve big cities including Dhaka of the pressure of excessive population, Finance Minister AMA Muhith today proposed to reduce withholding tax rates for real estate sector in the 2016-17 fiscal year budget.
The finance minister in an explanation said that this move, if implemented, will encourage people to buy small sized flats of apartments.

READ more: Muhith unveils national budget for FY 2016-17

Bangladesh is one of the most densely populated countries in the world. Everyday people are rushing towards the city centres to find employment or higher income. As a result, the big cities are facing the pressure of excessive population, Muhith said.
“If we can make the district level towns more attractive with planned housing and commercial establishments, it will reduce unwanted pressure on big cities,” Muhith said while delivering his budget speech at the parliament.
It will also reduce inter-regional disparity, and provide a space for equality in development, the minister opined.
“Moreover, we need to increase the demand for small-houses given the scarcity of land against huge population.”