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August 9 2022 2:33 AM ˚
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Realtors demand lower sales tax on building materials

5. Construction
Construction workers can be seen in this undated photo. (File photo: Ameer Khalifeh/Jordan News)
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AMMAN — Investors in the real estate sector have demanded a reduction in the sales tax on building materials, warning of an increase in apartment prices in the near future, according to Al-Rai daily.اضافة اعلان

Realtors said that an increase in shipping prices was causing a rise in the prices of imported building materials — including glass, supplemental iron and aluminum — and that these price increases are also causing apartment prices to increase.

Zuheir Al-Omari, an investor in the housing sector, asked the government to reduce the sales tax on building materials, among them iron, cement, and concrete. He explained that these materials contribute around 30 percent to construction costs.

Omari claimed that a reduction in the sales tax on building materials will contribute to preventing an increase in apartment prices in the near future, explaining that an increase in shipping prices has had negative effects on investors.

Muhammad Al-Saudi, also an investor in the housing sector, agreed with Omari that lowering sales taxes on building material would slow down the increase in apartment prices.

He declared that the demand for long-term apartments has been declining recently, and that is a result of a decline in buying power and the effects of the COVID-19 pandemic, in addition to the normal drop in demand for apartments during the winter.

Saudi stated that the prices of imported building materials has contributed to an increase in costs for investors, because of the increase in shipping prices. If this pressure is not reduced, it will be reflected in the prices of new long-term apartments, he said.

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