State and Scope of Property Taxation in Bangladesh
Section 3: Current State of Property Taxes in Bangladesh
-Learning from the Evidence
(iii) Valuation
Under land development tax, capital gains tax and wealth surcharge, property is assessed based on
acquisition value or deed value of property instead of the real value at current market price - it creates
significant social and income inequality
Deed value is often very small compared to current market price for the properties bought 30 years
before
In case of land development tax, mouza rate is often used for taxation where there is large
discrepancy between mouza rate and actual market price of property. In few cases, especially in rural
or peripheral area, mouza rate is higher than current market price
In case of capital gains tax, fair market price is used in the absence of actual purchasing price
The under-reported property value does not allow to calculate the actual tax assessment liability
amount
The valuation basis needs to be corrected and the discrimination between the value of property
bought 30 years before and property bought in recent years needs to be resolved through
adjustment with current market price
State and Scope of Property Taxation in Bangladesh
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