“For them, this will not lead to price increases, as with proper accounting of purchases of materials and raw materials that include VAT, it will be possible to utilize tax deductions,” she stated.
However, according to her, for small companies that construct 1-2 houses, this will require the implementation of accurate accounting practices.
“At the same time, this measure will make the tax burden on the construction business more transparent, which will help prevent the fragmentation of businesses. This, in turn, will reduce the number of deceived investors who invest in small construction companies and then cannot locate the developer.
Currently, there are two important initiatives:
- Housing purchases should be made exclusively in cashless form. This will significantly bring the market out of the shadows.
- The introduction of VAT on real estate transactions will enhance market transparency and reduce the number of unscrupulous developers,” added Ibragimova.