REHAB demands lowering flat registration fees and 1.5 percent VAT on iron rod

The Real Estate and Housing Association of Bangladesh (REHAB) has demanded reduction in flat registration cost and 1.5 percent VAT on iron rod in the upcoming budget.

REHAB leaders also demanded to allow unconditional investment of ‘undeclared income’ to the housing sector.

They put forward their demands at a press conference at CIRDAP auditorium on Saturday ahead of the budget session beginning early June.

REHAB acting President Liakat Ali Bhuiyan addressed the press conference. He was flanked by Vice-President Abdul Kauiam Chowdhury, Director Zohir Ahmed and co-chairman of the organisation Kamal Mahmud.

“The housing sector is in turmoil because of the lack of cash flow and rising construction cost. The flat buyers are not investing in the sector,” Liakat Ali said in a written statement at the press conference.

He said, “In 2008-09 there was single digit interest rate for the loan under Bangladesh Bank rule in investment in flats when many people managed to become a flat owner almost with the money he used to pay rent.”

“But suddenly the loan facilities were scrapped, and people find it difficult to buy a flat,” he added.

“Under the present circumstances, the 30-year loan facilities with the single digit interest rate under the Bangladesh Bank should be introduced so that the monthly payment should be lower than the house rent,” he demanded.

Liakat Ali said that a secondary market should be introduced in which when a flat is sold within five years by the first buyers, the registration cost should be no more than one percent.

“And if the sale takes place after five years, the registration cost should not be more than two percent,” he added.

REHAB also demanded reducing VAT on construction materials.