UNB, Dhaka :
The government has decided to impose katha-based advance tax replacing the existing 3 percent tax at source on the registration value of land sale in posh residential and commercially important areas of Dhaka and Chittagong.
Finance Minister AMA Muhith proposed this while placing his budget for the next fiscal in Parliament on Thursday.
He said, undervaluation at the time of registration of land transfer is causing a significant revenue pilferage every year. “It’s, therefore, essential to impose per katha-based advance tax system irrespective of registration value.”
Muhith also proposed imposing Specific Tax in the same manner based on per-square-feet in case of
transfer of important residential, commercial and other structures in Dhaka, Chittagong, and Narayanganj city corporations.
Considering the issue of capital gain, he proposed increasing the rate of tax at source from 3 percent to 4 percent on the deed value of land in areas other than the important commercial and posh areas within the jurisdiction of Rajuk and CDA.
