The National Board of Revenue has backtracked from the imposition of katha-based land transfer tax for privately-owned lands in Dhaka, Chittagong, Narayanganj and Gazipur because of complexities in collecting the tax by the land registration authorities.
The revenue board on Wednesday issued a clarification circular saying that tax would be imposed on privately-owned lands in Dhaka (except Bashundhara A-G blocks and Niketon residential areas), Narayanganj, Chittagong and Gazipur at the rate of 4 per cent of deed value on transfer of lands instead of katha-based specific amount of tax.
According to the circular, privately-owned land means the land that is not allocated, developed and sold by Rajdhani Unnayan Kartripakkha, National Housing Authority, Public Works Department and Chittagong Development Authority.
Katha-based specific amount of tax rate will be applicable on transfer of land and other structures that were earlier allocated, developed or sold by RAJUK, NHA, PWD, and CDA, the circular stated.
The NBR in the budget introduced katha-based land transfer tax for the cities keeping the maximum rate at Tk 10.80 lakh a katha or 4 per cent of the deed value of land, whichever is higher, irrespective of character of the ownership of land.
It also imposed tax at Tk 600 a square metre on transfer or sales of apartments, or flats, structures or buildings.
According to the circular, for lands in Bashundhara A-G blocks and Niketon residential areas, the tax will be imposed at Tk 90,000 a katha or 4 per cent of the deed value of the land.
NBR officials said that they brought in the revision due to some complexities raised by the land registration officials in collecting the tax following the new system which did not define the land on the basis of Mouza.
Registration officials said that they found difficulties in collecting land transfer tax in new system as they collect the tax defining land on the basis of Mouza while the NBR fixed the tax on the basis of area.
According to the clarification, for lands in Dhaka, Chittagong (Agrabad residential and commercial areas, Khulshi, Nasirabad, Halishohor, Panchlaish, CDA avenue and Mehedibag), Gazipur and Narayanganj that were allocated, developed and sold by RAJUK, NHA and PWD, and CDA in Chittagong the owners will have to pay tax for a katha (1.65 decimal) on transfer or sales as per existing rules of the NBR.
According to the existing rules which the NBR issued on July 1, the highest land transfer tax for a katha for Dhaka and Narayanganj and some areas of Chittagong and Gazipur is Tk 10.80 lakh, starting from Tk 30,000 or 4 per cent of deed value of land, whichever is higher.
The clarification also stated that land transfer tax would be imposed at the rate of 3 per cent of the deed value of the land in Gazipur, Narayanganj, Munshiganj, Manikganj, Narsingdi, Dhaka and Chittagong districts (excluding RAJUK and CDA areas), at 4 per cent of the deed value of the land in RAJUK and CDA areas and in any city corporations areas in the country.
For other areas, tax will be imposed as per the existing rules.
The circular said that non-resident Bangladeshis would not have to submit online their taxpayer identification numbers while buying lands or buildings in the areas of city corporations and paurashabha in district headquarters, value of which exceed Tk 1 lakh.
Legal guardian of a minor will have to submit his/her e-TIN in buying land or apartment for the minor, it stated.
-With New Age input
