The Real Estate and Housing Association of Bangladesh on Monday opposed the proposed 15 per cent capital gain tax on flats received by landowners under joint development agreements and demanded the withdrawal of the measure, saying that it would increase housing costs and deepen the sector’s ongoing difficulties.
However, the trade body welcomed the government’s initiative allowing investment of undisclosed money in the housing industry in the national budget for the 2026–27 financial year, which was placed in parliament on June 11.
Speaking at a post-budget press conference at the CIRDAP auditorium in the capital, the association’s leaders also criticised proposed increases in taxes and duties on several construction materials, saying that the measures would raise construction costs and flat prices.
‘The proposed gain tax amounted to double taxation,’ said REHAB president Ali Afzal.
He said that landowners were already required to pay a 15 per cent tax on signing money received from developers and that the new tax would create a fresh crisis in the housing sector.
‘Ultimately, the burden will be passed on to flat buyers through higher prices,’ he said.
REHAB, however, welcomed the government’s decision to allow investment of undisclosed money in the purchase and sale of land, flats and buildings without questioning the source of funds.
Afzal described the move as a positive step that could bring unreported wealth into the formal economy, increase investment in the housing sector, create jobs and improve liquidity.
He said that the real estate sector was currently facing multiple challenges, including high interest rates, limited access to long-term housing finance, sluggish sales, mounting bank loan burdens, policy uncertainty and declining investor confidence.
The association said that registration costs for flats and land currently exceeded 13 per cent, discouraging transactions in the sector.
Although REHAB had proposed reducing registration costs to 7 per cent, the recommendation was not reflected in the proposed budget, it said.
The organisation also expressed disappointment that its long-standing demand for establishing a secondary real estate market had not been included in the budget proposals. REHAB criticised proposed increases in taxes and duties on construction materials, including steel rods, PVC resin, PET resin, cold-rolled coil, copper wire and copper tubes.
REHAB senior vice-president Abdur Razzak, vice-president-1 Mohammad Akhtar Biswas, vice-president-2 Abu Khalid Md Barkat Ullah, vice-president-3 AFM Obaidullah, vice-president (finance) Md Harun Or Rashid and vice-president (Chattogram region) Mohammad Murshidul Hasan, among others, were present at the press conference.
The association urged the government to withdraw the proposed gain tax, reduce property registration costs and introduce housing loans at single-digit interest rates under easier terms.
