The building industry has faced with a deep recession in the past few years that this recession, in addition to reduce the production of building, has also greatly impacted on housing buyers and sellers and has faced this section with a crisis.
As Khane.com reports according to Mehr Agency News quoting, however the problems of this section has not become so prominent due to the recession; but certainly in addition to financial problems that imposes on the housing providers in the long term, will not be responsive to the applicants need and will face the market with more challenge.
Accordingly, in such circumstances that the Ministry of Road and Urban Development is trying to increase the purchasing power of applicants by implementing policies in lending sector, in housing providers point of view, applying some policies will lead to rise in housing prices. In fact, the building industry recession has reduced the housing prices in recent years but the housing price is still higher than the purchasers’ power, for this reason has not happened a booming for these declines in prices and this section is also faced with many problems that increasing in production prices could also inflict another blow to this sector.
In housing providers point of view, Article 64, Article 59 and Article 77 of Act direct taxes that is related to the field of construction, have changed in new law and in accordance with Article 64 of Act taxes, it is ordained that 2 percent of real estate transactions prices to be calculated on average as tax base annually.
This tax base is to be reached from 2 percent to 20 percent within 10 years and the real estate’s average price is calculated as transaction value but the base was in past years that some percent of region prices in ratio to any alley and township was calculated as the basis for calculating the transaction value.
Housing providers point of view about Act direct taxes
The value basis will reach to 700 to 800 thousand Rials by new tax law that due to the impact of Article 64 and the value of real estate transactions, has a direct relation to some types of complication and services that can increase the production and manufacturing costs, in this regard, the Secretary of National Mass Housing Association announcing that this figure was on average for the entire of country regions between 40 thousand Rials to 800 thousand Rials, added.
It seems that a high financial burden is made by updating figures and numbers so we are expected that Article 64 to be again checked, Mr. Poorhajat indicating that licensing complications, Jurisprudent, registration costs, transferring, separation and partition and a few other examples of these cases, has a direct relation with transaction value, said.
The taxes were set according to any alley and township in the past but now the average price in a township will be put as calculating criterion while any alley’s condition is different of another alley, he stating that how to calculate the tax is thing that the construction providers have objected to that, said.
If the purpose of this law implementation has been tax clarification that seems this has not happened, the Secretary of National Mass Housing Association emphasizing that the real estates with more value will give lower tax and the real estates with less value will give more tax in this way, said.
The country’s public inflation even has been seen in this law but it is very difficult to have an inflation observation in this instruction and be a right calculation basis, Mr. Poorhajat continued.
He declared about Article 77 of direct taxes Act: this Article indicates that any tax that is in the field of construction will be transferred to home buyers, while we don’t want to transfer the financial burden of production field to people because the tax costs in the field of construction and the building industry is put in critical condition.
In conditions that the building industry has got in crisis and the country’s economy is critical, these high taxes make the production status more difficult, the Secretary of National Mass Housing Association emphasizing that the governments should help to production line at the time of economic crisis and recession, said.
Mr. Poorhajat stating that the real estate’s base of transaction value will increase on average about 500 to 600 percent in Article 64, added: taxes should not be taken from capital but should be taken from job, if the tax is to be on capital so the investors can be entered in capital markets or deposit in a bank that has not any tax.