Starting from today (Monday), Bangladesh is set to enter a new era in the land development tax collection in accordance with the Land Development Tax Act 2023.
According to the law, the timeline for collecting land development tax will be aligned with the fiscal year, from July 1 to June 30 each year instead of previous system of Pahela Baishakh to 30 Chaitra of Bengali calendar year.
This change synchronizes the land development tax collection system with the national fiscal year.
Previously, the collection period for land development tax was from Pahela Baishakh to Chaitra 30 in the Bengali calendar year, according to a Land Ministry press release.
It is anticipated that aligning with the fiscal year will simplify and streamline the management of land development tax payments for individuals and organizations. Moreover, assessing the impact of land development tax on the national economy will become more convenient.
Regarding the changes, Land Minister Narayon Chandra Chanda said, "We firmly believe that this new system will strengthen countrys land revenue collection system and bring dynamism to the revenue collection process. Let us all strive together to make this new journey successful. We believe this change will make the land development tax collection process more balanced, transparent, and effective."
Prime Minister Sheikh Hasina inaugurated the online land development tax system in 2021.
Since April 14, 2023, land development tax has been collected 100 percent online nationwide. The Ministry of Land won the prestigious WSIS Prize 2022 for its land development tax system.
Due to digitalization, land revenue collection in the land sector has increased more than threefold or over 200pc. Under the direction of the Minister of Land, the system for land development tax is being enhanced to smarter, overseen by Land Secretary Md. Khalilur Rahman.
It is noted that land development tax must be paid based on the current year, meaning the land development tax for each year can be collected without fine by June 30 of that year.
Agricultural landholding individuals or families owning up to 8.25 acres or 25 Bighas are exempt from paying land development tax. However, if the total agricultural land exceeds 25 bighas, the tax must be paid on the entire agricultural land. Conversely, non-agricultural land is classified by usage into commercial, industrial, residential, and other categories.
The government, through notification in the official gazette, determines and revises the land development tax rates for non-agricultural land based on these classifications and collects the tax accordingly.
Additionally, the government, through notification in the gazette, may exempt any person, category of persons, or any organization from paying land development tax on agricultural or non-agricultural land as specified in the notification.
