Real Estate and Housing Association of Bangladesh (REHAB) has called for allowing undisclosed income to be invested in the housing sector, alongside sweeping tax cuts, to revive the struggling real estate market.
The proposals were submitted to the National Board of Revenue (NBR) ahead of the 2026-27 budget on Wednesday.
REHAB President Md Wahiduzzaman said the housing sector supports around 4 million livelihoods and has been a development partner for more than three decades.
The association proposed reducing total apartment registration costs to a single digit from the current level of around 16 per cent to make housing more affordable.
It suggested cutting gain tax to a flat 3 per cent, stamp duty to 1 per cent, and local government fees to 1 per cent to ease transaction costs.
A uniform 2 per cent VAT for all apartment sizes has also been proposed, replacing the existing structure where smaller units face higher rates.
To stimulate property resale, REHAB proposed establishing a formal secondary market with total transfer costs capped at 4.5 per cent.
The association also sought tax holidays to encourage planned urbanisation, proposing five years in Dhaka and other metropolitan areas and ten years outside municipalities.
A key proposal includes reinstating provisions allowing investment of undisclosed income in apartments without questioning the source of funds.
REHAB said the move would bring idle funds into the formal economy and support housing demand.
The association argued that lowering tax rates would increase overall revenue by boosting the volume of registered transactions.
It also proposed VAT exemption on all types of concrete blocks to promote environmentally friendly construction materials.
Developers said high registration costs and multiple VAT layers are slowing the sector amid economic and political uncertainty.
NBR officials said the government has already reduced income tax rates for the sector but remains cautious about allowing undisclosed income.
They also pointed to persistent underreporting of property values during registration, which affects tax collection.
Officials said the government is moving towards a regular tax regime and encouraging formal financial channels for investment.
Developers proposed introducing lower registration costs on a trial basis for six months to assess the impact on revenue.
Revenue officials said previous reductions in rates did not yield the expected increase in collections.
