The recently enacted Income Tax Act 2023 has resulted in the doubling of property registration tax across all areas of Bangladesh, including Dhaka, Chattogram, Narayanganj, and Gazipur. The National Board of Revenue (NBR) has set the new tax rates under the Income Tax Act 2023, which was published in the gazette on July 3, following a decision made on June 26.
According to the new rules, property owners in prime areas such as Gulshan, Banani, and Motijheel in the capital, among others, will have to pay the highest registration tax. The tax is set at 8% per Katha or Tk 20 lakh, whichever is higher, for the registration of land, flats, or any other structures. This represents the highest property tax rate ever imposed.
The tax rates have also been increased in other areas, with the tax ranging from 4% to 8% in different locations. The increase in tax rates is aimed at achieving revenue collection targets and addressing the significant gap between real value and deed value across the country. While the increased tax rates may impact property buyers, the NBR emphasizes that those with the ability to purchase immovable property in the capital can afford to pay the taxes.
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