HC stays extra holding tax in DSCC

The High Court today stayed the effectiveness of notices issued by Dhaka South City Corporation imposing extra holding tax from the owners within its area.

The court also issued a rule questioning the legality of charging extra holding tax from owners.

In the rule, the High Court asked authorities concerned to explain why charging extra holding tax from landlords in DSCC area in comparison to the model tax fixed under the relevant law should not be declared illegal.

Five high officials including LGRD secretary, DSCC mayor and its chief executive officer have been made respondents to the rule.

The bench of Justice Tariq ul Hakim and Justice Md Faruque came up with the rule after hearing a writ petition filed by 104 residents of Khilgaon area in Dhaka challenging the legality of the notices issued by the DSCC imposing extra holding taxes on them.

Under the Municipal Corporation (Taxation) Rules- 1986, the government issued a gazette notification in 2015 imposing seven percent tax on land and building, seven percent for conservancy (clearing wastages), five percent for street light, three percent for water and eight percent for health sector, petitioners’ lawyer Barrister Mucktadir Rahman told The Daily Star.

But, the DSCC authorities have been collecting taxes for land and building, conservancy and street light from 320 to 974 times higher in comparison to the model tax fixed by the law, which is illegal, the lawyer said, adding that the DSCC has issued notices on the holding owners at different times imposing the extra taxes.