A boost for real estate

The government has halved the tax for transferring immovable property by the companies located in city corporation areas of Dhaka and Chattogram.

The property transfer tax has been cut to 1.0 per cent from 2.0 per cent by issuing a gazette notification.

The reduced tax rate will come into effect from December 1, 2020.

Local Government Division of the Local Government, Rural Development and Cooperatives Ministry issued the gazette, signed by LGD senior secretary Helal Uddin Ahmed.

The division has amended the City Corporation Model Tax Schedule-2016 in this connection.

Companies in Dhaka South City Corporation, Dhaka North City Corporation and Chattogram City Corporation will be able to avail the benefit.

However, it will be applicable to the companies who will transfer immovable properties.

Earlier, there was 2.0 per cent transfer tax on the total value of immovable property, mainly land, for all.

People familiar with the development said the reduction of tax on properties will facilitate real estate business, pushing down the cost of registration of land and apartments.

Earlier, the government had halved the taxes on registration fees of the land or flat and stamp duty on the transfer value of property registration.

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