NBR pre-budget discussion: REHAB proposes lower flat reg costs

The Real Estate and Housing Association of Bangladesh (REHAB) has proposed reducing flat registration fees and lowering the gain tax from 8% to 4%.

REHAB President Md Wahiduzzaman made these proposals, during a pre-budget discussion at the National Board of Revenue (NBR) office in the capital's Agargaon today (11 March). 

The meeting was chaired by NBR Chairman Abdur Rahman Khan.

Md Wahiduzzaman outlined REHAB's key demands: lowering stamp duty from 1.5% to 1%; keeping registration fees unchanged at 1%; reducing local government tax from 3% to 1%; standardising VAT at 2% for all flat sizes (currently 2% for flats up to 1,600 square feet and 4.5% for larger flats).

He said lowering registration costs would encourage flat sales and boost revenue, and that only land developers should pay VAT on government-declared property values.

REHAB also urged VAT exemptions on all concrete blocks, which currently apply only to hollow and autoclaved aerated concrete blocks.

Furthermore, REHAB called for the creation of a secondary real estate market, proposing a 4.5% flat rate for second-time sales of flats or plots, which would increase government revenue and establish a structured real estate market like in developed countries.

Other industry demands

At the event, Bangladesh Shipping Agents Association Director AHM Kamal urged the quick finalisation of the Shipping Agent Licensing Regulations 2024, as no new shipping agent licenses have been issued for over three years, affecting trade growth.

Mohammed Nazmul Hassan, senior vice president of Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, requested duty-free machinery imports for the leather and footwear industry, similar to the textile sector. 

He also proposed introducing a common bonded warehouse system under the general bond facility.

During the discussion, Bangladesh Reconditioned Vehicles Importers and Dealers Association President Abdul Haque demanded the removal of supplementary duty on 10-15 seat microbuses, stating that the 89.32% duty discourages investment in rental vehicle services.

Moynul Islam, president of Bangladesh Ceramic Manufacturers and Exporters Association, called for the removal of 15% supplementary duty on local tile production and export duties on ceramic bricks, which currently stand at 15%. 

He also urged tax exemption for the struggling ceramic industry.

General Secretary of Bangladesh Tanners Association Md Mizanur Rahman proposed lowering VAT on leather processing chemicals from 15% to 7.5%. 

He also requested the exclusion of raw leather purchases from 3% tax deduction at source (TDS) under the Withholding Tax Rules 2023.

Bangladesh Freight Forwarders Association President Kabir Ahmed proposed removing the words "on air cargo carriage" from Section 522JJ of the Income Tax Ordinance, arguing that it increases export costs.

In response, NBR Chairman Abdur Rahman Khan assured that the proposals would be reviewed.