More gains tax makes property ownership costlier
Finance Minister AHM Mustafa Kamal today proposed doubling the property registration tax for the next fiscal year in order to increase the government's revenue collection.
In his budget speech for fiscal 2023-24, Kamal suggested raising the property registration tax in various areas, including Dhaka, Chattogram, Narayanganj and Gazipur, to 8 per cent from the existing 4 per cent.
To buy property in the capital's Gulshan, Banani, Motijheel, Dilkhusha, North South Road and Mohakhali areas, currently buyers have to pay 4% of the deed value or Tk 10.8 lakh, whichever is higher, as tax for registering each katha.
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From 1 July, the gain tax could be raised to 8% of the deed value or Tk 20 lakh, whichever is higher.
The finance minister proposed raising the rate of property transfer tax to 6% from 3% in the municipal jurisdictions of any district for fiscal 2023-24.
Besides, he proposed raising the rate of gain tax to 2% from 1% for property in areas that are not in the specified schedule for the next fiscal year.
