Tuesday, September 26, 2017 | ePaper

Burden of VAT on realtors

  • Print
THE impending 15 percent VAT on rod will take a huge toll on construction of buildings, particularly in rural areas, and increase the cost of infrastructure in the infrastructural deficient country. A daily reported that if every tonne of rod is priced at Tk 50,000, each customer will have to pay Tk 7,800 as VAT under the new law, up from Tk 900 now. As a result, the development of the rural housing sector, which accounts for about 30 percent of the country's total demand for iron bar, will grind to a halt. It seems that the uniform VAT clearly subdues the people's aspiration and need for standard living. If tax and VAT take all savings and income of people, how do the citizens make their life fortunate?
The 15 percent VAT slated to be imposed on all products and services from July 1 will increase the plights of citizens though the blindfolded Finance Minister could not perceive this. It is feared that the consumption of rod in rural areas may fall to about 2-3 lakh tonnes from the existing 15-18 lakh tonnes. While the domestic steel mills growth became stable by manufacturing 50 lakh tonnes of steel a year, the government imposed deterrent will put the sector in disequilibrium and increase infrastructural deficiency across the country.
The VAT will also increase electricity bills for manufacturing the iron bars and the spending on raw material imports, all of these will ultimately affect the rod price. The new VAT will increase the government's revenue earnings from the sector but the industry will be squeezed and the people will be pinched. Rod prices began increasing just after the announcement of the proposed budget for fiscal 2017-18 on June 1. It is illogical to impose VAT on key building materials when the government is exempting VAT on manufacturing of luxury goods like refrigerators and air conditioners.
The infrastructure and other construction projects of the government account for 40 percent of the country's demand for rod, followed by private builders in urban areas, who use the rest 30 percent, and both will also suffer.  People accept the government's role as a   Social Contract where people pay tax and government provide facilities in exchange of tax, but the very notion of state is absent in our country. The government is apathetic to people's suffering which is illegal, irrational and unethical.

More News For this Category

Devise alternative to polythene

THOUGH polythene shopping bags have been banned since 2002 for blocking water flows, coagulating drainage systems, and hurdling surface waters to intrude into the ground they have staged a

Angela Merkel wins Fourth Term

ANGELA Merkel creates history by winning election fourth time. Her Christian Democratic Union/Christian Social Union (CDU/CSU) had maintained a double-digit lead over the Social Democratic Party (SPD) led by

Preventing Rohingya killings by International Genocide Law

Barrister M. A. Muid Khan : "…Any time you find the government involved in a conspiracy to violate the citizenship or the civil rights of a people, then you are wasting

Don't protect us from doing business!

Thilo Brodtmann  :After the State of the European Union address, the Commission presented its proposal for a screening procedure that encourages member states to control and possibly block acquisitions by

Readers’ Forum

Reading historyThe Muslims never drove away the Buddhists from the soil of India-their breeding land,  did not kill 60 lakh Jews in Europe and other parts of the world during

BUET project on highway accidents needs early execution

A PROJECT developed by The Accident Research Institute (ARI) at Bangladesh University of Engineering and Technology (BUET) is expected to help in the reduction of road accidents by 50%,

Despite repeated global condemnation plight of Rohingyas worsens

THE inflow of Rohingya refugees from violence-torn Rakhine State in Myanmar slowed for the last few days owing to bad weather but thousands have started entering Bangladesh once more.

Quota system on perpetual basis may be disastrous

Dr. Md. Shairul Mashreque :The Bangladesh Public Service Commission (PSC) has recently advocated simplification of quota system in recruitment process. For there are existing complexities in applying quota. "The application

Distorted picture coming from Myanmar

Mohammad Amjad Hossain  :Distorted picture is emerging from the mouth of Nobel laureate and de facto leader of Myanmar Aung San Suu Kyi, who herself was a prisoner during military

International response to the Mexico earthquake

Tony Redmond :Until this week, it had been 32 years since Mexico City suffered its last major earthquake. That was of 8.0 magnitude, which was approximately tenfold greater than Tuesday's