The government is set to raise the transfer fees for floor spaces of flats and shops in the capital’s Dhanmondi and Tejgaon industrial areas by 150%, in a bid to enhance revenue earnings, official sources have said.
The mutation fees – needed to change title ownership – of land, housing space and flats of the two areas will also increase between 40% and 300 % soon.
President Abdul Hamid signed a gazette notification by the housing and public works ministry last week regarding the increase of mutation fees and transfer fees for Dhanmondi and Tejgaon areas under Rajdhani Unnayan Kartripakkha (Rajuk).
The development branch of the housing ministry is expected to issue a gazette notification on this issue within a few days.
Housing Secretary Md Golam Rabbani confirmed the fee increase, and said authorities would further look into the “small increase” in land transfer and mutation fees.
General Secretary of Real Estate and Housing Association of Bangladesh (REHAB) Md Wahiduzzaman told the Dhaka Tribune that recent months had seen land prices of Gulshan, Dhanmondi and Baridhara areas stay low compared to two years ago. The situation was similar in Chittagong and other parts of the country.
He also claimed that bankers and realtors have blamed the price slide on political unrest, the slow pace of economic growth and a bar on investing untaxed money in the housing sector. The raise in fees would not increase government earnings from the housing sector, he added.
Wahiduzzaman also said thousands of unsold flats, priced at 10% less than from a year ago were discouraging developers to buy new land for fresh projects, further contributing to the fall in land prices. The deterioration of the political situation might cause prices to fall further, he added.
As per a circular dated last month, the transfer fee for shop and floor spaces at Dhanmondi and Tejgaon areas would see a 150% rise, climbing to Tk200 from existing Tk80 for every square feet area.
The Tk5,000 mutation fees for five kathas of land in Dhanmondi area will not increase, while those for 10, 15, and above will see 100%, 200% and 300% rises respectively.
Transfer fees for housing and flat spaces of 1,500 square feet in Dhanmondi will see a 40% increase, becoming Tk7,000 from the existing Tk5,000.
Mutation fees of housing and commercial space of above 1,500 square feet at Dhanmondi will double to Tk10,000 from the existing Tk5,000 fee.
Mutation fees for 10 katha plots at Tejgaon industrial area will double to Tk10,000 from an existing Tk5,000; for 15 katha it will see a 200% increase to become Tk15,000 while plots above 15 katha will need Tk20,000 as mutation fees, a 300% rise from the existing rate .
In 2008, a survey by Bangladesh University of Engineering and Technology showed that Dhaka had experienced an unprecedented increase in land prices since the early ‘70s, with Dhanmondi showing a rise of 12,000%.
According to the land registry office in Dhaka, upwards of Tk428 crore was realised through registration charges, fees for certified copies of registered deeds, stamp fees and pay orders during the July-December period last year, compared to Tk697 crore during the January-June period of 2013.
The government annually earns Tk5,000 crore from 13 areas through registration of transfer deeds.