State and Scope of Property Taxation in Bangladesh
Section 1: Introduction - Context
Direct Tax Composition and Share in Bangladesh (%)
☐ Direct taxes are overwhelmingly based on
income
Components
Total Direct Tax
(Income/property/profit/wealth + Land
☐ Property tax obtained from land tax and Tax+ Stamp Duty + Surcharge) (%) (A+B+C)
stamp duty has been constantly declining for
the last five years and been only about 5% of (Income/property/profit/wealth) as Share
total direct tax during this timeframe
A. Income Tax
☐ Strengthening collection from property taxes (B1+B2)
should be a critical part of ongoing domestic
revenue mobilisation effort
☐ Need to explore new sources of direct tax,
such as inheritance tax
FY2018 FY2019
FY2020
FY2021
FY2022
100
100
100
100
100
91.86
92.32
94.60
95.27
95.15
of Direct Tax (%)
B. Property Tax as Share of Direct Tax (%)
8.14
6.69
4.61
4.17
4.41
B1. Land Development Tax as Share of
Direct Tax (%)
2.58
0.91
0.84
1.00
0.89
B2. Stamp Duty Collection as Share of
Direct Tax (%)
5.56
5.78
3.78
3.17
3.52
C. Surcharge
0.00
0.99
0.78
0.56
0.44
State and Scope of Property Taxation in Bangladesh
Source: Authors' compilation based on MoF Monthly Reports (2018-2022)
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