REHAB wants unconditional black money investment facility for housing sector

Business Report :
The country’s real estate businesses want authorities to allow black money to be invested in the housing sector with no questions asked for the next 10 years.
Speaking at the meeting with the National Board of Revenue at the board’s Agargaon headquarters in the capital, Real Estate and Housing Association of Bangladesh (REHAB) Administrator Jannatul Ferdous also asked that authorities not question buyers about the source of money used to purchase their first flats.
The government had introduced a facility to invest black money in all sectors, including the housing sector in the fiscal year 2020-21 with only 10% tax.
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It was, however, later cancelled in the face of staunch criticisms from various think tanks, economists and rights activists.
At present, there is an opportunity to invest undisclosed income or black money in any sector including housing with a maximum of 25% applicable tax. On top of it, investors need to pay an additional 10% tax on the applicable tax
Speaking about the facility during Sunday’s pre-budget meeting, REHAB’s Jannatul said, “If the earlier privilege of authorities not asking any questions [about black money investment] is not reintroduced, the transfer of large amounts of money abroad will further increase.
“Furthermore, due to the opportunity to buy second homes in different countries, a lot of the country’s money is going abroad, as the authorities there ask no question about the source of money for making such purchases.
She added, “If the government allows investment of undisclosed amount of income, the investors under the facility can be taxed in future. This will help increase the government’s revenue.”
According to REHAB, the government received Tk2,065 crore in revenue during FY21 by providing investment opportunities for undisclosed income. But as this opportunity was cancelled, the government has been deprived of that revenue.
Meanwhile, the REHAB also called for reducing the existing fees for flat and plot registration from 12% to 7%.

The organisation made a total of eight proposals in the meeting for the next fiscal year.
NBR Chairman Abu Hena Md Rahmatul Muneem presided over the meeting, where representatives of various organisations in the construction sector also presented their proposals.