Brazil's civil construction union SindusCon-SP along with other real estate associations are fighting to impede a hike from 2 to 3 percent in the ITBI tax in the city of Sao Paulo, SindusCon-SP said earlier this week.
The ITBI tax or transfer tax is a percentage the government receives when a real estate owner sells his property or transfers the rights of it to another person or company.
The tax increase was approved on December 18, but since then, the move has caused controversy among civil construction and real estate associations.
“In a moment which the real estate industry in Sao Paulo is being affected by the general retraction in investments, reflected by the reduction of volume of launching and sales [of properties], the increase in the ITBI tax is a factor to complicate the acquisition of properties and the retake of the sector’s growth,” Jose Neto, SindusCon-SP president said in a statement.
The executive claims the tax increase was voted and approved without public consultation.
“It’s not fair to penalize the property buyer in a moment the real estate industry seeks to produce more accessible products inside of a new director plan for the city,” Neto said. “The measure also won’t contribute to the reduction of unemployment between the workers of civil construction in Sao Paulo.”
According to Neto, the level of employment in the civil construction segment should fall between one and two percent in 2014, and “there’s no perspective for improvement in 2015.”