Land transfer tax cut in some areas

The government has cut the land transfer tax in certain areas of Dhaka and Chattogram districts in order to make it affordable, encourage the registration of property transfers and increase revenue collection.

A transfer tax is a charge levied on the transfer of ownership or title of property from one individual or entity to another. A transfer tax may be imposed by a state, county or municipality, according to Investopedia.

Earlier, 8 percent of the value of the land mentioned in the deed or Tk 500,000 per katha (1.65 decimals), whichever is higher, used to be charged in Gulshan, Banani, Motijheel and Tejgaon of Dhaka.

The new rate is 6 percent or Tk 50,000, whichever is higher, according to a National Board of Revenue notification last month.

The rate in Dhanmondi, Wari, Tejgaon Industrial Area, Shahbagh, Ramna, Paltan, Bangshal, New Market and Kalabagan was 8 percent or Tk 300,000, whichever is higher. It has now been reduced to 6 percent or Tk 300,000, whichever is higher.

The rate in the airport area, Uttara (west), Mugda, Hazaribagh, Demra and Adabar was 8 percent, or Tk 100,000, whichever is higher. It has now been fixed at 6 percent or Tk 100,000, whichever is higher.

The rate in Dohar, Nawabganj, Keraniganj, Savar and Dhamrai upazilas of Dhaka was 6 percent or Tk 50,000. It has been brought down to 6 percent or Tk 20,000.

In Chattogram, the rate in Khulshi, Panchlaish, Pahartoli, Halishahar and Kotwali will be 6 percent or Tk 50,000, whichever is higher, from 6 percent or Tk 80,000 previously.