The Dhaka North City Corporation (DNCC) has requested the government to provide it with a chunk of revenue being collected by other public agencies from its territory, officials said.
It is aimed to help raise its earnings for providing better services to city dwellers, they added.
DNCC Mayor Annisul Huq made the plea in a recent letter to Finance Minister AMA Muhith, saying that the corporation needs substantial funds to ensure essential services to inhabitants in the capital's posh areas.
He said the City Corporation Act-2009 empowered it to impose supplementary taxes on goods imported and exported to and from the city corporation area, and on the taxes imposed on those by the government.
Mr Huq also said the corporation needs to expand tax net to be self-dependent financially.
Citing an example, he said the city corporation does construct, repair, and maintain roads in its territory, but the road tax is being collected by Bangladesh Road Transport Authority (BRTA). The government uses the funds to meet budgetary spending needs.
Mr Huq said the DNCC has legal right on all the taxes collected by the government from the businesses in its territory.
According to officials, revenue earnings and expenditure of the DNCC are almost equal. In the fiscal year 2014-15, the corporation earned Tk 6.04 billion as revenue.
The mayor said since earnings and spending are equal, it has become tough for the corporation to implement development projects from its own income.
"But the DNCC needs to implement development programmes to keep the city inhabitable for the sake of national and people's interest. The corporation is facing fund crisis in its endeavour to ensure minimum facilities for its populace," he said in the letter.
The last general tax assessment of Dhaka city was held in 1989-90. In absence of re-assessment of taxes, the earnings of DNCC didn't increase, the mayor said.
The DNCC was formed in December 2011 with an area of 82.638 square kilometres of Dhaka city having 36 wards. Its population was 3.957 million then.
The corporation's major income sources include collection of holding tax, fees for issuing new holding number, correction of records for property transfer, issuance and renewal of trade licence, issuance of licence of non-motorised vehicles, allotment and collection of rent of shops of DNCC-owned markets and collection of amusement tax.
For the fiscal year 2015-16, the DNCC unveiled a Tk 16.01 billion budget for which the mayor expected a Tk 4.76 billion development assistance from the government.
Most of the city's important establishments, including Prime Minister's Office and residence, National Parliament Building, Sher-e-Bangla National Cricket Stadium, diplomatic zone, most of the renowned private universities and posh areas like Gulshan, Banani, Baridhara, and Uttara are in the DNCC's territory.
A senior official at the Ministry of Finance told the FE that the government provides assistance to the city corporations for carrying out development programmes.
Acknowledging receiving such a proposal for revenue sharing from the DNCC, he said the issue is under scrutiny.
Replying to a query, he said the MoF didn't receive any such proposal from the Dhaka South City Corporation (DSCC).
However, DSCC Mayor Mohammad Sayeed Khokon could not be reached for his comment despite several attempts.
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