Dhaka: Dhaka Chamber of Commerce and Industry (DCCI) has called upon the government to slash the bank interest rate so that people could afford to buy even a small flat for their living.

‘The rate of interest on home loan is too high in our country though housing or accommodation is one of our basic needs,’ said DCCI president Hossain Khaled.

He made the call when DCCI Board of Directors met Housing and Public Works minister Mosharraf Hossain in his office on Tuesday. Housing Secretary Shahid Ulla Khandaker was present.

The DCCI president said flat sales witnessed a fall remarkably in recent times for lack of gas connections.

He said the government may divide the city into several parts and supply Titas gas to some parts and supply LPG (Liquefied petroleum gas) to other parts through pipeline.

Hossain also proposed cutting high registration fee, stamp duty, gain tax in case of selling used flat and apartments.

The Chamber leader also urged the government to reduce 15% VAT on construction materials to mitigate the cost of doing business in this sector.

Hossain recommended relocating leather processing units, garment factories to specialised economic zones outside Dhaka which will ensure planned industrialisation, better workplaces for workers and a pollution-free liveable city.

He said coordinated efforts were needed to be taken to save rivers and swamp areas from the illegal grabbers.

Mosharraf Hossain listened to their proposals and said the government has planned to build 30,000 flats under public-private initiative in the Dhaka North city’s Mirpur area. ‘We should popularise the use of LPG in households to reduce pressure on limited natural gas,’ the minister was quoted as saying in a statement issued by the DCCI.

He also said the rate of interest on house loan should be within single digit to ensure ‘accommodation for all’.

DCCI vice-president K Atique-e-Rabbani, FCA, directors Hossain Akhtar, Kamrul Islam, FCA, Alauddin Malik, Muktar Hossain Chowdhury, Salim Akter Khan and DCCI secretary general AHM Rezaul Kabir were also present at the meeting.