The article features the cost-decrease of some building products and others, such as lightening arresters, firefighting equipment and building bricks used in home gardening, and electric fan. The article also includes the insights of Zahid Hussain, lead economist at the World Bank’s Dhaka office, who basically expected some structural reforms with the first budget made by the re-elected government with a new election manifesto and a new finance minister. He also expected, according to the article, a new beginning where major structural reform initiatives addressing the most pressing problems currently afflicting the economy would be the most distinguishing feature relative to the previous budgets.
Location based special tax treatment
Source: Dhaka Tribune
Date: June 13, 2019
The article features on Location based special tax treatment announced in this proposed budget for the next financial year in respect of investment in residential buildings, flats, lands. The article presents the insights of Liaquat Ali Bhuiyan, Vice-President at REHAB, regarding to this proposal where he anticipates a positive impact of this on the real estate sector and the business growth.
The article demonstrates the budget- In Gulshan, Banani, Baridhara, Motijheel and Dilkusha Commercial areas, Tk4,000 per square metre tax will be imposed and would not exceed 200sq/m which is Tk5,000 currently. If it exceeds 200 Sq/m the tax rate would be Tk5,000 per Sq/m, which is currently Tk7,000
For Dhanmondi Residential Area, Defence Officers Housing Society (DOHS), Mohakhali, Lalmatia Housing Society, Uttara Model Town, Basundhara Residential area, Dhaka Cantonment in Dhaka and Agrabad , Khulshi and, Nasirabad area of Chittagong, the tax rate will be Tk3,000 per sq/m till 200sq/m and Tk3,500 above 200sq/m. Tk10,000 real estate tax will be imposed for per sq/m of land in the above mentioned areas also.
For buildings, apartments and lands situated in areas of any city corporation and other areas except the mentioned ones, the tax rate would be Tk800 per sq/m till 120sq/m, Tk1,000 till 200sq/m and Tk1,500 above it.
Money whitening scope to foster real estate sector
Source: Dhaka Tribune
Date: June 10, 2019
The article features on the government plans to legalize black money by allowing it to be invested in industries with an aim to boost private investment. Bangladesh’s business community is against any scheme of whitening the black money, but supportive of fiscal measure to legalize undisclosed and untaxed money in the upcoming budget for the next financial year (FY2019-20). According to the BEA estimate, Bangladesh has around Tk 5 trillion to Tk 7 trillion of black money.
The government anticipates that by boosting investment, the move will help generate employment in the private sector.
Land Registration Fee Decreases
Date: 13 June, 2019
The article features the decrease of land-registration fee and the increase of financial allotment for the ministry of Housing and Public Work in the Budget 2019-20. It says that our financial minister proposed to allot 457 crore more for the Ministry of Housing and Public Work for the next fiscal year. Demonstrating the long-term stability in our real estate sector in the parliament, minister says that real estate sector didn’t get extended due to excessive duty stamp and registration fee. Consequently, government gets deprived of having the revenue whereas the amount of undisclosed money has been increasing. Minister emphasizes that to confront these, necessary steps will be taken soon. To this end, land-registration fee will be pulled down at a rational level. Financial minister anticipates the real estate sector to be amplified once it implemented.
The article features likewise 60,000 more flats to be built at the area of Purbachal, Dhaka under PPP and a plan to build up a compact township in the flood problem area beside Turag River.