Dhaka, June 5 -- Several fiscal measures outlined in the proposed national budget for FY 2025-26 could severely impact the country's real estate and construction sector, which is already grappling with rising costs and declining demand, industry insiders have warned.

As per the proposed budget, value added tax (VAT) on services of construction companies and linkage accessories like iron products, plastic and paint would go up considerably, leading to further hike in construction cost, they added.

Besides, proposed move to ensure the land registration at actual market value would also fuel building construction costs, both for residential and commercial.

Realtors and allied industry people said construction of new buildings is directly ...