State and Scope of Property Taxation in Bangladesh
Tools of
Property Tax
Tax Base
Tax Exemption
Section 2: Selected Global Practices of Property Tax
What to learn from other countries' experience?
Holding/Municipal Tax
Most of the selected developed countries have
broad tax base (land/improvement/parcel of
land and improvement) for holding tax
■
Holding tax base should be expanded in
Bangladesh by including untaxed
properties and businesses following the
example of the USA, Canada, Australia,
and all the selected Scandinavian
countries
Most of the selected countries limit tax
exemptions to essential services, such as
properties used for hospitals, schools and
other charitable purposes OR to encourage
investment
Land Development Tax
Most of the selected countries have broad tax
base which includes agricultural, commercial,
and residential land or land and
improvement
Exemptions should be as few as possible
considering the economic neutrality and
administrative efficiency as practiced in
Australia and Denmark
Inheritance Tax
☐ All the selected developed countries have broad
tax base which includes both financial and non-
financial assets
☐ Imposing a modest exemption for small estates
and avoiding excessive exemptions to restore
revenue potential of the inheritance tax is a
common practice in all the selected countries
Assessment
Methodology
Capital valuation (valuation based on current
market selling price of similar property) of
property is widely practiced in majority of the
selected countries except India and Pakistan
State and Scope of Property Taxation in Bangladesh
☐ Regular and market-informed valuation of
land is conducted as practiced in Australia
☐ Market-based capital valuation of property is
practiced in all the selected countries
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