State and Scope of Property Taxation in Bangladesh
Section 4: Implementation Challenges of Bangladesh Property Taxes
- Gap Analysis
Policy Variables Related Challenges of Property Tax
Tools of Property Tax
Tax rate
Challenges
High tax rates of wealth surcharge discourage taxpayers from paying tax
▪ A survey findings suggest that the country's average tax rate of 35% is considered high and is a
significant factor behind tax evasion - a 35% wealth surcharge is applied in case of net
assets above 50 crore
✓ Such wealthy people are unlikely to disclose their actual amount of total wealth during
filing tax returns in an attempt to pay a lower level of surcharge
Burden of land development taxes is not equally distributed
▪ Land tax on agricultural land is a major source of revenue in rural areas where the tax rate is flat
for everyone, income tax is the major tax in urban areas which is imposed at a progressive rate
▪ Lack of access to land records and databases exacerbates the tax burden
State and Scope of Property Taxation in Bangladesh
Justice concern
Efficiency concern Transparency concern
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