Staff Reporter :
The High Court (HC) on Sunday issued a rule over the Dhaka South City Corporation (DSCC) authorities to show cause as to why excess collection of tax beyond the fixed amount in DSCC area should not be declared illegal.
The court also stayed the effectiveness of the notices circulated in various times in this regard on behalf of DSCC. The court also wanted to know as to why the notices should not be declared illegal.
The HC bench of Justice Tariq ul Hakim and Justice Md Faruque passed the order after primary hearing of a writ petition filed by the 104 tax payers of Khilgaon area of the city.
Five respondents including Local Government Secretary, DSCC Mayor and Chief Executive Officer have to comply with the rules in four weeks.
Barrister Md Moktadir Hossain took part in the hearing on behalf of the taxpayers, while Deputy Attorney General Amatul Karim stood for the State.
As per Municipal Corporation (Taxation) Rules 1986, the municipal authority cannot impose taxes more than five to 10 percent. The government published a gazette in 2015 under this rules.
As per the gazette, the municipal authority can impose taxes seven percent on building and land, seven percent on waste collection, five percent on road lights, three percent on water supply and eight percent on health sector. All the sectors included 30 percent tax.
Taxpayers’ lawyer said, “Taxes should be calculated considering the annual evaluation of the house rent fixed in every area of the city. As per rule, the authority will evaluate the house rent after in every five years. But they are not doing so. Moreover, they are issuing notices imposing excess taxes beyond the law. In many cases, they are imposing taxes 320 percent to 976 percent higher. The court issued rules asking as to why these notices should not be declared illegal.”
The High Court (HC) on Sunday issued a rule over the Dhaka South City Corporation (DSCC) authorities to show cause as to why excess collection of tax beyond the fixed amount in DSCC area should not be declared illegal.
The court also stayed the effectiveness of the notices circulated in various times in this regard on behalf of DSCC. The court also wanted to know as to why the notices should not be declared illegal.
The HC bench of Justice Tariq ul Hakim and Justice Md Faruque passed the order after primary hearing of a writ petition filed by the 104 tax payers of Khilgaon area of the city.
Five respondents including Local Government Secretary, DSCC Mayor and Chief Executive Officer have to comply with the rules in four weeks.
Barrister Md Moktadir Hossain took part in the hearing on behalf of the taxpayers, while Deputy Attorney General Amatul Karim stood for the State.
As per Municipal Corporation (Taxation) Rules 1986, the municipal authority cannot impose taxes more than five to 10 percent. The government published a gazette in 2015 under this rules.
As per the gazette, the municipal authority can impose taxes seven percent on building and land, seven percent on waste collection, five percent on road lights, three percent on water supply and eight percent on health sector. All the sectors included 30 percent tax.
Taxpayers’ lawyer said, “Taxes should be calculated considering the annual evaluation of the house rent fixed in every area of the city. As per rule, the authority will evaluate the house rent after in every five years. But they are not doing so. Moreover, they are issuing notices imposing excess taxes beyond the law. In many cases, they are imposing taxes 320 percent to 976 percent higher. The court issued rules asking as to why these notices should not be declared illegal.”
