REHAB hails allowing undisclosed money in housing sector

The Real Estate and Housing Association of Bangladesh (REHAB) has hailed many budgetary proposals, especially for allowing investment of undisclosed money in productive sectors.

However it strongly opposed imposition of additional tax on construction materials, particularly MS rods.

In a statement, the trade body on Friday said a large volume of undisclosed funds has remained outside the mainstream economic activities for years.

Allowing such resources into housing and related sectors will reintegrate them into the formal economy, generating employment and liquidity, it said.

In the statement the REHAB President Dr. Ali Afzal expressed gratitude to the government, noting that the country's realtors had been advocating for such a measure in recent weeks.

Highlighting the importance of the housing sector, he said nearly 269 linkage industries are directly or indirectly linked to the real estate sector.

Fresh inflows of capital would stimulate activities across interconnected industries including cement, ceramics, electrical goods, furniture and transport, said the REHAB statement.

While appreciating the fiscal amnesty as a transitional measure, the REHAB urged the government to pursue long-term reforms.

A simplified and transparent tax regime would encourage spontaneous compliance and gradually reduce the tendency to accumulate undisclosed wealth, it said.

At the same time, the association voiced concern over rising construction costs, which would ultimately create extra burden on consumers, thus undermining their affordability.

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