Govt to cut flat registration fee to boost real estate sector

In the face of realtors’ demand, the government has is reducing the fee for flat registration in a move designed to boost the real estate sector.

“A bill on slashing flat registration fee will be tabled in the next session of parliament,” said Housing and Public Works Minister SM Rezaul Karim while inaugurating a housing fair organised by the Real Estate and Housing Association of Bangladesh or REHAB in Dhaka on Tuesday.

Housing and Public Works Minister SM Rezaul Karim speaks at the inaugural ceremony of a five-day winter fair at the Bangabandhu International Conference Centre in Dhaka on Tuesday. Photo: Asif Mahmud Ove

People visit a stall at the winter fair organised by REHAB at the Bangabandhu International Conference Centre in Dhaka on Tuesday. Photo: Asif Mahmud Ove

The bill has been sent to the law ministry for vetting, after which it will be tabled in the winter session, according to him.

Currently, a buyer of a flat or plot has to pay 14 to 15 percent of the property value as registration fee. The realtors have long been demanding that the registration be brought down to 6 to 7 percent to help shore up the struggling housing industry.

At present, property registration cost includes: 4 percent gain tax, 3 percent stamp fee, 2 percent registration fee, 2 percent local government tax and 3 percent VAT.