State and Scope of Property Taxation in Bangladesh
Section 3: Current State of Property Taxes in Bangladesh
- Learning from the Evidence
There are six major property taxes in Bangladesh
that have been legislated at different times -
☐ Land Development Tax
☐ Wealth Surcharge
☐ Holding tax
☐ Capital Gains Tax
☐ Stamp Duty
☐ Gift Tax
The classification of property taxes in
Bangladesh in aligned with global
Property Taxes as Share of Total Tax Revenue in Bangladesh (%)
Type of Property Taxes
2017-18
2018-19 2019-20 2020-21 2021-22
Land Development Tax as Share of Tax Revenue (%)
Wealth Surcharge as Share of Tax Revenue (%)
Stamp Duty Collection as Share of Tax Revenue (%)
0.82
0.29
0.30
0.34
0.29
0.22
0.23
0.27
0.19
0.18
1.76
1.87
1.36
1.08
1.13
Capital Gains Tax (+ Income) as Share of Tax Revenue
(%)
N/A
29.76 33.98 32.37 25.50
Gift Tax as Share of Tax Revenue (%)
0.0001
0.0001 0.0001 0.0001 0.0001
Source: Authors' compilation based on MoF monthly reports ( 2018-2022) LRGD yearly
reports (accessed on April 2023), NBR Annual report (accessed on April 2023)
property tax composition as per OECD and
IMF reports
☐ Land tax which is the most important property tax across the globe, contributes to very small share of total tax
revenue in Bangladesh - below 0.50% on an average over the years
☐ The contribution of wealth surcharge is also very low and gift tax is negligible
☐ The share of capital gains tax is inflated as it is combined with the income tax estimation and data is not available
for only capital gains share
☐ Holding tax is collected by local government and spent on local budgetary expenditure. Hence, holding tax is not
component of total tax revenue accounted by the central government of Bangladesh
State and Scope of Property Taxation in Bangladesh
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