REHAB opposes extra taxes on construction materials, proposed capital gains levy

The Real Estate and Housing Association of Bangladesh (REHAB ) has strongly opposed the proposed additional taxes on construction materials and a new capital gains tax on flats received by landowners in the 2026-27 fiscal year budget, calling for both measures to be withdrawn.

At the same time, the organisation yesterday welcomed the government’s decision to allow voluntary disclosure of previously undisclosed investments in land, flats and buildings during property transactions without questioning the source of funds.

Speaking at a press conference held at the CIRDAP auditorium in the city on Monday, REHAB President Ali Afzal said, “The government’s initiative to bring undisclosed money back into the mainstream economy is positive.

It will increase investment in the housing sector, create employment, and boost liquidity in the economy.”

According to REHAB, the housing sector is linked to around 269 industries and contributes approximately 15per cent to 16per cent of the country’s GDP. The sector also supports the livelihoods of nearly five million people directly and indirectly.

The association pointed out that registration costs for flats and land currently exceed 13per cent, discouraging transactions in the sector.

Although REHAB had proposed reducing the registration cost to 7per cent, the recommendation was not reflected in the proposed budget.

The organisation also expressed disappointment that its long-standing demand for establishing a secondary real estate market was not included.

Afzal argued that the proposed 15per cent gain tax on flats allocated to landowners amounts to double taxation, as landowners are already subject to a 15per cent tax on signing money received from developers.

He warned that the additional tax would create a new crisis in the housing sector.

Illustrating the impact, he said that if a landowner receives 12 flats worth Tk12 crore in a 24-unit project, the landowner would be required to pay approximately Tk1.8 crore in tax.

Ultimately, he added, the added financial burden would be passed on to homebuyers through higher apartment prices.

REHAB also criticised the proposed increase in taxes and duties on construction materials, including steel rods, PVC resin, PET resin, cold-rolled coil, copper wire, and copper tubes.

The organisation warned that higher costs for these materials would further increase construction expenses and drive up housing prices.

The association called on the government to withdraw the newly imposed tax, reduce property registration costs, and introduce housing loans at single-digit interest rates under easier terms.

REHAB leaders said revitalising the housing sector would help stimulate the broader economy, create employment opportunities, and strengthen the foundation for sustainable development.

The association urged the government to reconsider housing-sector-related proposals before the national budget is passed.