The National Board of Revenue (NBR) has finalised new tax rates for transfer of land across the country. However, the board has increased the tax rates on posh and commercial land in major urban centres substantially.
The new tax rates fixed for commercial land range between Tk 0.3 million and 1.08 million per katha or 4.0 per cent of the deed value, whichever is higher.
The new rates came into effect from Tuesday (July 1). The NBR issued a letter to the central land registration authority mentioning the revised land transfer taxes.
Talking to the FE Tuesday, a senior NBR official said the land transfer tax has been doubled this year by changing its mode of collection.
Earlier, it was 3.0 per cent on registration value of the land transferred.
The highest tax rate has been fixed at Tk 10,80,000 per katha for transfer of land in Gulshan, Banani, Motijheel expansion area, Dilkusha, North-South Road and Mohakhali areas in the capital city.
Land owners in the city's Kawran Bazar, Uttara, Sonargaon Janapath, Shahbagh, Panthapath, Banglamotor and Kakrail of Dhaka would be required to pay tax rate of Tk 6,00,000 per katha while transferring their land.
Tax rate would be Tk 3,60,000 for Narayanganj, Bangabandhu Avenue, Badda, Syedabad, Postogola and Gandaria of Dhaka and, Agrabad and CDA Avenue of Chittagong.
Land owners in Nawabpur and Fulbaria areas of Dhaka would pay Tk 3,00,000 tax on transfer of land.
In case of transfer of any structure, building, flat, apartment or floor space that is situated on the land, an additional tax would have to be paid at the rate of Tk 600 per metre or 4.0 per cent of the deed value, whichever is higher.
In other zones, land transfer tax will be fixed, ranging from Tk 30,000 to Tk 300,000 depending on the locations.
The NBR also brought agricultural land under tax net for the first time this year. Transfer of farmland would require payment of 1.0 per cent tax on deed value.
For land or flat lease registration by the Rajdhani Unnayan Kartripakkha (RAJUK), the Chittagong Development Authority (CDA), the Rajshahi Development Authority (RDA), the Khulna Development Authority (KDA) and the National Housing Authority (NHA), the tax rate would be 4.0 per cent of the deed value.
Land tax for areas within the jurisdiction of a municipality of any district headquarters has been fixed at 3.0 per cent of the deed value while at 2.0 per cent for areas of any other municipality.
The NBR also made submission of Taxpayers Identification Number (TIN) mandatory for purchase of land above Tk 1,00,000 in city corporation and municipal areas in district towns. However, TIN submission is not mandatory for non-resident Bangladeshis.
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