The Real Estate and Housing Association of Bangladesh on Wednesday demanded that the National Board of Revenue allow legally earned undisclosed money in buying apartments and investing in real estate sector without paying penalty and disclosing the source of money.
At a pre-budget discussion with the NBR at the revenue board’s conference room, realtors also demanded reduction in tax and fees on registration of flats and plots to 4.5 per cent from the existing 12.5 per cent.
‘The NBR should reintroduce the provision 19B of the Income Tax Ordinance-1984 that allow people to invest their undisclosed money in real estate sector by paying only income tax,’ said Liakat Ali Bhuiyan, vice-president of the REHAB, while placing the association’s budget proposals.
The revenue board scrapped the provision in 2011 and introduced a new provision imposing additional 10 per cent penalty along with income tax for whitening undisclosed money, he said.
He said, ‘If the NBR exempts people from paying penalty in buying apartments, it will help stop laundering of huge money and keep the sector grow removing the current stagnant situation.’
The association also demanded reduction in income tax on transfer of per square metre residential land, buildings and apartments to Tk 1,000, Tk 800 and Tk 500 respectively from existing Tk 2,000, Tk 1,800 and Tk 800 for three different categories.
The REHAB also proposed to reduce tax on transfer of commercial land, buildings and apartments to Tk 5,000, Tk 3,000 and Tk 1,000 respectively from the existing Tk 8,000, Tk 6,000 and Tk 2,000 for three different categories.
As part of the discussion for preparing the budget for the 2012-13 financial year, the NBR also had discussions with other associations related to construction industry, plastic and rubber industries on Wednesday.
At the meeting with the NBR, Bangladesh Auto Re-rolling and Steel Mills Association proposed an increase in duty on import of MS bar and MS rod and a reduction in customs duty on import of raw materials to protect local re-rolling and steel mills.
The association also proposed withdrawal of pre-shipment inspection system for import of melting scrap, re-rollable scrap and sponge iron.
The Bangladesh Ceramic Ware Manufacturers Association proposed a reduction in customs duty on import of raw materials and machinery to 5 per cent from the existing 12-25 per cent.
The Bangladesh CR Coil Manufacturers and Exporters
Association proposed an increase in customs duty on import of CR coil to protect local manufacturers.
The Bangladesh Steel Building Manufacturers Association of Bangladesh recommended that the NBR should reduce duty on import of raw materials used in the sector and increase duty on import of finished pre-fabricated building.
The Bangladesh Pathor Babosayee Samity demanded that the NBR increase supplementary duty on import of crushed stone from India to 75 per cent from the existing 20 per cent and reduce customs duty on import of boulder stone to 6 per cent from the existing 25 per cent for the growth of the sector.
NBR chairman Ghulam Hussain said that the revenue board would consider the proposals while preparing budget document.
NBR members Farid Uddin and Syed Aminul Karim were present, among others, in the meeting.
-With New Age input
