The government will launch a field-level campaign from May to whip up public opinion on its decision to hike land development taxto offset the probable negative impact on taxpayers.
The land ministry will issue a letter to the deputy commissioners requesting them to hold view-exchange meetings in their respective areas on the issue.
According to the decision, a team led by land ministry’s additional secretary of the law wing will exchange views with district level local people, stakeholders, civil society members and political leaders to create public awareness, a source in the land ministry said.
The rate and figures of land development taxes will be fixed on the basis of recommendation of view-exchange meetings, he said.
Meanwhile, the deputy commissioners from across the country suggested the government reduce the ceiling of tax-free land to 10 bighas from the existing 25 bighas.
The proposal will be placed in the next deputy commissioners’ conference scheduled to be held in Dhaka on July 8-10 for discussion.
The DCs in their suggestion said the government gave tax waiver facilities in 1970s considering the financial condition of people. But the scenario has changed now and the facilities should be reduced.
When asked about the government decisionAdditional Secretary Ibrahim Hossain Khan of the ministry yesterday said: “It’s not that we have already taken the decision to hold view-exchangemeetings but we are thinking about it as it will help the government implement the decision.”
“We have asked the divisional commissioners to give their opinion on the issue. An inter-ministerial meeting has been called on April 20. The commissioners will give their opinion and suggestions in the meeting. Everything will be finalised after the meeting,” he added.
Earlier, the government started a move to hike land development taxes considering the increasing land price and the expenditures in the land sector.
The land ministry, to this end, has taken an initiative for a 100% to 200% hike in land tax. A draft proposal was sent to the divisional commissioners who were supposed to give their opinion by March 15 but they have not yet sent any reply.
The last increase in the land development tax came into effect in 1995.
Land Ministry’s Senior Secretary Mohammad Safiul Alam a few days back said: “The move to increase the land tax has been taken but it will take some more time as the government is taking people’s reaction into account.”
“The step was taken last year. A sub-committee of the ministry led by Ibrahim Khan prepared a draft proposal for the tax increase,” said additional secretary Ibrahim Khan.
The ministry, however, did not finalise the draft taking into consideration the national election. After the government resumed the office, the initiative was revived. Probably the draft will be placed before the inter-ministerial meeting soon, he said.
The government exempted all owners of rural areas having land up to 25 bighas (8.33 acres) from paying land revenue by a presidential order. It was remained as it is according to the order.
The revenue from landholders having from over 25 bighas to 10 acres will be increased to TK1per decimal from TK0.50. But the owners having agriculture land of above 10 acres will have to pay Tk2per decimal.
Owners of Dhaka, Chittagong, Khulna, Narayanganj and Gazipur areas have to pay more as land development tax. In those areas owners of industrial plot have to pay Tk300 in place of the existing TK125 and TK60 in place of Tk22 for a decimal residential plot.
But in Keraniganj, Savar, Dhamrai municipalities, Rupganj Sadar under Narayanganj, Siatkunda and Rangunia under Chittagong district the new tax will be TK250 from that of Tk125 for industrial plot and TK50 from that of Tk22for residential plot per decimal.
As per the proposal, the owners of district headquarters municipality areas have to pay TK22 for industrial plot and TK7for residential plot per decimal while it is TK17 and TK6for the municipalities out of district headquarters. It is only TK15 and TK5 for the areas that are not declared as municipalities.
