However, the imposition of a 16% Value Added Tax (VAT) on construction materials has raised serious concerns among industry stakeholders.
This tax, applied to essential products such as cement, rebar, tiles, paint, and other construction materials, directly impacts the cost of real estate projects.
Real estate developers, who already struggle to secure financing due to high-interest rates from banks, see their margins further reduced.
Moreover, a declining real estate market also negatively impacts related sectors such as furniture, hardware, transportation, and logistics, further reducing the multiplier effect of the real estate boom on the national economy.
The imposition of a 16% VAT on construction materials risks significantly slowing down the real estate boom in the DRC, with negative consequences on housing accessibility, employment, and economic growth.
Author(s): expobeton-newsletter.net
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