The National Board of Revenue wants revaluation of the minimum price of land transfer for ensuring tax collection from the sector through reducing the gap between the government set price and actual price of transaction. The revenue board on Sunday decided to recommend to the government for assessing the existing base-value of land and upgrade it in line with the market price, officials said.
They said that the government was losing huge amount in revenue as lands were being sold at prices many times higher than the price set by the government.
There are no alternatives to upgrading the government rate of land value for different areas across the country, the NBR observed.
At a meeting with the commissioners of income tax, customs and value-added tax organised for reviewing overall situation of revenue collection, the NBR discussed the issue of reforming the land pricing system.
The meeting also discussed on how to ensure collection of surcharge imposed on millionaires owning assets worth more than Tk 2 crore.
‘We found that land was being transferred at prices manifold than the base price set by the government. So the revenue board decided to recommend the government for upgrading the price for ensuring tax collection from the sector,’ a high NBR official, who attended the meeting, told New Age.
The NBR can recommend either directly or after gathering opinions from stakeholders including the government offices, he said.
The revenue board may arrange a seminar or inter-ministerial meeting by next months in this connection, he added.
In its recommendation, the revenue board will consider the impact of revaluation particularly in investment.
A top revenue official said that a piece of land in Gulshan, Dhanmondhi or any other posh areas in the city was registered, for example, at Tk 1 crore taking advantage of the government set minimum price, but the land was actually transferred at the price of Tk 20 crore.
Sellers and buyers show the price of land at lower during transfer of the ownership for dodging tax and other fees including stamp fees, registration fees and local-government tax.
In this way, the government is losing revenue while the sellers and buyers are falling in a trap of black money or untaxed money.
According to NBR, sellers have to pay 2 per cent gain tax or advance income tax for transfer of land property in city corporation area, cantonment board and municipality areas, and one per cent for land outside of city corporations and municipalities.
Currently, law ministry, land ministry and Directorate of Registration jointly set the rate of land value for different areas of the country at regular interval.
Generally, the government separate the rate for city corporations, municipalities and villages. The rate differs at Mouza, bottom level of land mapping system.
-With New Age input
