“The VAT hike fuels the prices of building materials”

Realtors said today that the cost of various raw materials, including rods and lifts, will rise in the next fiscal year due to higher value added tax and tariffs.

The National Revenue Board (NBR) has proposed to increase the excise tax by 200 taka per ton at the billet and rod manufacturing stage.

After the peak, the VAT rate on the manufacture of billets will increase by 20% from Tk 1,000 to Tk 1,200 per ton.

As a result, rod prices will rise, affecting home builders, said Alamgir Shamsul Alamin, chairman of the Real Estate and Housing Association of Bangladesh (REHAB).

He spoke at a press conference at Pan Pacific Sonargaon in Dhaka when the association shared its budget reactions.

In addition, the NBR has increased the import tariff for the 19% increase for the next fiscal year 2022-23, in addition to the increase in customs duties for cables, tube sheets and aluminum sheet. , which real estate agents believe will further fuel home prices.

The concern is that the construction cost of buildings under construction and new buildings has increased by 500 Tk per square foot.

REHAB said home buyers will have to pay an additional Tk 1,000 per square foot.

Estate agents also demanded the continuation of the uncontested amnesty for black money in properties for the next fiscal year.

The Minister of Finance, in his last budget speech, did not propose to continue the black money amnesty in the sector.

Tk 20,600 crore was laundered in the financial year 2020-21 and the amount would rise to Tk 50,000 crore if the government pursues black money amnesty, Alamin said.

The association believes the sector will be able to play a fruitful role in government revenue if its demands are met, he said.

The country can meet the gross domestic product growth target if the manufacturing sector, including the housing sector, remains buoyant, he said.