NBR decides to devise property tax criteria

Doulot Akter Mala | Published: April 01, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

Doulot Akter Mala
The National Board of Revenue (NBR) has decided to set criteria of the property tax in consultation with the individual and corporate taxpayers, the civil society and economists. The board has decided to arrange meetings with policymakers, taxpayers, economists and trade bodies before finalising framework of the tax. "We will hold a meeting on April 12 to share ideas on introduction of property taxes on immovable properties," said a top revenue board official. In the draft 'direct tax act-2011', the expert panel of the revenue board has proposed introduction of property taxes from 2012-13 fiscal. Initially, the revenue board has planned to introduce the tax on excess land and household properties at a minimum rate which will not exceed 3.0 per cent. The NBR official said the draft law, uploaded on the website, proposed imposition of the wealth tax by incorporating valuable things in its net. But later the NBR has decided not to slap the tax on valuable things. A senior income tax member said the NBR is not expecting any significant collection of revenue from property taxes, but the tax department will impose it for 'maintaining social equity'. He said some economists call the tax 'double-taxation' on taxpayers as they are already paying holding taxes for these properties. The income tax official said the authorities were forced to scrap the wealth tax in 1998-99, although tax officials wanted continuation of the option. Another field level official said the then government had scrapped the wealth tax after lobbying by an influential quarter who owned huge landed and residential properties. The revenue board has discussed the property tax issue with the members of parliament (MPs) to clarify the objectives of imposition of the tax, he said. The NBR recently proposed to the Prime Minister imposition of property tax to collect more taxes from the well-off section of the people.