State and Scope of Property Taxation in Bangladesh
Section 4: Implementation Challenges of Bangladesh Property Taxes
- Gap Analysis
Administrative Variables Related Challenges
Tools of Property Tax
Tax base coverage
Challenges
☐ Registration cost of land/flat is very high with all the taxes and fees requirements
imposed during the registration process
▪ This discourages property registration which in turn affects tax base coverage, tax liability
assessment and corresponding tax collection
Taxes and fees upon transfer of property in Bangladesh
State and Scope of Property Taxation in Bangladesh
Taxes and Fees
Rates on Land
Rates on Apartments
Stamp duty
Registration fee
1.5%
1.5%
1.0%
Capital Gains Tax
Max 4.0%
1.0%
Max 4.0%
Local Government Tax
Max 3.0%
Max 3.0%
Value Added Tax (VAT)
Total registration fee
Max 3.0%
12.50%
Max 4.5%
14%
Justice concern
Efficiency concern
Transparency concern
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