Revision of land prices, registration fees likely
Thursday, 28 January 2010
FE Report
The recently fixed land prices and registration fees are set to be reviewed as an official committee has recommended downward revision of the rates, official sources said.
The committee headed by an additional secretary of the law ministry, submitted Wednesday its final report at an inter-ministerial meeting at the secretariat.
According to a meeting source, the committee has recommended reduction of the land prices and rationalisation of land registration fees, revised by the government a few months back.
After the meeting, Finance Minister AMA Muhith hinted at the possibility of reviewing the enhanced rates.
"The committee has placed its final recommendations… Now we will review those," Mr Muhith told reporters after the meeting.
The finance minister, however, said the final decision in this respect would take one more month.
In the national budget 2009-10, the government drastically slashed the land registration fees fixing the rate at 6.0 per cent in rural areas and 8.0 per cent in urban areas against the earlier rates of 14 per cent and 18 per cent respectively, Mr Muhith said.
In early September, the government raised land prices in all the city corporations, municipalities and district headquarters by up to four times with effect from September 1 for the next three years.
Land prices under Dhaka and Chittagong city corporations were increased four-fold and in other city corporations - Sylhet, Rajshahi, Khulna and Barisal - three-fold while 2.5 times in the district headquarters.
The government formed the committee to report to the government following allegations that people benefited little from the reduction of registration fees due to the enhancement of land prices.
"We are satisfied with the committee report, which contains recommendations based on field-level survey," the finance minister said.
Among others, the committee in the report said there remains a mismatch between the prices of the government and private land.
Responding to a query, Mr Muhith ruled out the possibility of further price hike of flats following the proposed revision of land prices.
Rather, the rationalisation of land prices and its registration fees will encourage people to register land in actual prices, which will ultimately help prevent use of 'black money, and also reduce people's sufferings.'
The government wants to simplify the land registration systems so that people are able to pay fees at one point instead of several places.
The recently fixed land prices and registration fees are set to be reviewed as an official committee has recommended downward revision of the rates, official sources said.
The committee headed by an additional secretary of the law ministry, submitted Wednesday its final report at an inter-ministerial meeting at the secretariat.
According to a meeting source, the committee has recommended reduction of the land prices and rationalisation of land registration fees, revised by the government a few months back.
After the meeting, Finance Minister AMA Muhith hinted at the possibility of reviewing the enhanced rates.
"The committee has placed its final recommendations… Now we will review those," Mr Muhith told reporters after the meeting.
The finance minister, however, said the final decision in this respect would take one more month.
In the national budget 2009-10, the government drastically slashed the land registration fees fixing the rate at 6.0 per cent in rural areas and 8.0 per cent in urban areas against the earlier rates of 14 per cent and 18 per cent respectively, Mr Muhith said.
In early September, the government raised land prices in all the city corporations, municipalities and district headquarters by up to four times with effect from September 1 for the next three years.
Land prices under Dhaka and Chittagong city corporations were increased four-fold and in other city corporations - Sylhet, Rajshahi, Khulna and Barisal - three-fold while 2.5 times in the district headquarters.
The government formed the committee to report to the government following allegations that people benefited little from the reduction of registration fees due to the enhancement of land prices.
"We are satisfied with the committee report, which contains recommendations based on field-level survey," the finance minister said.
Among others, the committee in the report said there remains a mismatch between the prices of the government and private land.
Responding to a query, Mr Muhith ruled out the possibility of further price hike of flats following the proposed revision of land prices.
Rather, the rationalisation of land prices and its registration fees will encourage people to register land in actual prices, which will ultimately help prevent use of 'black money, and also reduce people's sufferings.'
The government wants to simplify the land registration systems so that people are able to pay fees at one point instead of several places.