Land and property registration cost doubles

The tax on property registration has been doubled under the Income Tax Act 2023 in all areas of the country including Dhaka, Chattogram, Narayanganj, and Gazipur.

Whether transferring immovable property or land and flats in any area of Bangladesh, acquisition of ownership requires double taxation, as per the new Income Tax Act,

Under the Income Tax Act 2023, the National Board of Revenue (NBR) has fixed the new tax in the source tax rules. After taking the final decision in this regard on June 26, the Act was published in the gazette on July 3.

The owners of immovable property in Gulshan, Banani, Motijheel, Dilkusha, North South Road, Motijheel and their extended areas, and Mohakhali area of the capital have to pay the highest amount as registration tax.

For buying property in these areas, a buyer has to multiply 8 percent tax per Katha or Tk 20 lakh, whichever is the maximum will be taken into consideration in taxing for registration of land, flats, or any other structures. This is considered the highest property tax ever.

According to Section-6 of the Income Tax Act 2023, entitled 'Collection of Tax on Transfer of Property', property registration tax has been increased from 4 percent to 8 percent in various areas of Dhaka, Chattogram, and Narayanganj.

Besides, the tax has been increased from 3 percent to 6 percent in Gazipur, Munshiganj, Manikganj, Narsingdi and Dhaka, and Chattogram areas outside the City Corporation and municipal areas.

Apart from this, the property tax under the jurisdiction of any municipality in Bangladesh has been increased from 2 percent to 4 percent and in other areas from 1 percent to 2 percent.

Earlier on June 1, the finance minister proposed this regard in his budget speech. And that proposal was included in the new rules.

A senior official of NBR said that to achieve the revenue collection target; it is natural to increase the tax rate.

“In our jurisdiction, this sector has huge revenue generation opportunities. Moreover, the difference between the real value and deed value of almost all land or flats across the country including the capital is huge. Although, we have increased the tax rate on deed value,” the official said.

Those who can buy immovable property in the capital can pay that tax, he said.