Substantial hike in urban land prices on the cards
Sunday, 5 August 2007
Shakhawat Hossain
The government is contemplating a hike in the prices of residential and commercial lands under the housing and public works ministry and their transfer and conversion fees in Dhaka and others parts of the country, official sources said.
The prices of land in the capital and other districts have been proposed to increase by 200 per cent to 1150 per cent.
The proposals awaiting the approval of the finance and planning adviser are aimed at increasing the collection of non-tax revenue, sources said.
According to the proposal, the prices of land in Dhanmondi and Green Road residential areas will rise by 900 per cent to Tk 80 million per bigha from the existing price of Tk 8.0 million.
A similar hike of 900 per cent in the price has been proposed for the land in the areas like Sher-e-Bangla Nagar and Agragaon administrative areas.
A senior finance ministry official said the existing rates were fixed in 1993 and these should be adjusted upward to bring the land prices at least closer to the actual market levels.
"The new land prices, if approved, will help the public works and housing ministry to narrow the widening gap between its previously fixed prices and the present market rates," he added.
The prices of land in the city's commercial areas such as Motijheel and Dilkhusa have been proposed to increase by 500 per cent to Tk 120 million per bigha from the existing Tk 20 million.
The ministry concerned has proposed the price hike of the government land ranging between 400 per cent and 733 per cent in places like Bangabandhu Avenue, Khilgaon and Rajarbagh rehabilitation projects, Kakrail, Segunbagicha, Eskaton and Elephant road, Karwan Bazar, Nawabpur and Fulbaria commercial areas and Mohammadpur and Cox's Bazar residential areas.
The highest 1150 per cent increase has been proposed for the land in Mirpur industrial area at Tk 20 million against the existing price of Tk 0.36 million.
The ministry has also suggested raising the transfer fees for lands and apartments in Dhanmondi, Tejgaon, Khilgaon, Hazaribangh, Mirpur, Motijheel, Chittagong industrial, residential and commercial areas in the range between 10 per cent and 25 per cent of the land prices.
It has also sought approval for increasing land-prices under the RAJUK and Chittagong and Rajshahi development authorities.
Sources said the immediate past government intended to readjust the land-prices upward on a number of occasions, but failed to do so due to political consideration.
The present caretaker administration has hinted substantial rise in non-tax revenue collection in its budget announcement.
Of the total revenue collection of Tk 615.56 billion for the current fiscal, Tk 114.63 billion has been shown as non-tax revenue.
The non-tax revenue projection is 19 per cent higher than its original target of Tk 96.27 billion in the last fiscal.
The government is contemplating a hike in the prices of residential and commercial lands under the housing and public works ministry and their transfer and conversion fees in Dhaka and others parts of the country, official sources said.
The prices of land in the capital and other districts have been proposed to increase by 200 per cent to 1150 per cent.
The proposals awaiting the approval of the finance and planning adviser are aimed at increasing the collection of non-tax revenue, sources said.
According to the proposal, the prices of land in Dhanmondi and Green Road residential areas will rise by 900 per cent to Tk 80 million per bigha from the existing price of Tk 8.0 million.
A similar hike of 900 per cent in the price has been proposed for the land in the areas like Sher-e-Bangla Nagar and Agragaon administrative areas.
A senior finance ministry official said the existing rates were fixed in 1993 and these should be adjusted upward to bring the land prices at least closer to the actual market levels.
"The new land prices, if approved, will help the public works and housing ministry to narrow the widening gap between its previously fixed prices and the present market rates," he added.
The prices of land in the city's commercial areas such as Motijheel and Dilkhusa have been proposed to increase by 500 per cent to Tk 120 million per bigha from the existing Tk 20 million.
The ministry concerned has proposed the price hike of the government land ranging between 400 per cent and 733 per cent in places like Bangabandhu Avenue, Khilgaon and Rajarbagh rehabilitation projects, Kakrail, Segunbagicha, Eskaton and Elephant road, Karwan Bazar, Nawabpur and Fulbaria commercial areas and Mohammadpur and Cox's Bazar residential areas.
The highest 1150 per cent increase has been proposed for the land in Mirpur industrial area at Tk 20 million against the existing price of Tk 0.36 million.
The ministry has also suggested raising the transfer fees for lands and apartments in Dhanmondi, Tejgaon, Khilgaon, Hazaribangh, Mirpur, Motijheel, Chittagong industrial, residential and commercial areas in the range between 10 per cent and 25 per cent of the land prices.
It has also sought approval for increasing land-prices under the RAJUK and Chittagong and Rajshahi development authorities.
Sources said the immediate past government intended to readjust the land-prices upward on a number of occasions, but failed to do so due to political consideration.
The present caretaker administration has hinted substantial rise in non-tax revenue collection in its budget announcement.
Of the total revenue collection of Tk 615.56 billion for the current fiscal, Tk 114.63 billion has been shown as non-tax revenue.
The non-tax revenue projection is 19 per cent higher than its original target of Tk 96.27 billion in the last fiscal.