Major Tax Reforms Proposed to Ease Property and Financial Burdens
Dhaka — January 30, 2026: In a significant move to stimulate the real estate market and simplify the national fiscal framework, a government-appointed task force has recommended slashing property registration costs by half. The National Tax Structure Reorganisation Committee, led by PRI Chairman Zaidi Sattar, presented these proposals to the Chief Adviser this week.
1. Slashing Property Registration Costs
Currently, buyers in Dhaka face a steep 12.5% total tax and fee burden when registering land or apartments. For a property valued at BDT 10 million, this translates to BDT 1.25 million in additional costs. The committee’s proposal aims to reduce this total expenditure by 50%, making formal property ownership significantly more affordable.
Current Cost Breakdown (Dhaka/Chattogram):
Advance Income Tax: 5%
Local Government Tax: 3%
Stamp Duty: 1.5%
Registration Fee: 1%
VAT: 2% (for flats under 1,600 sq. ft.)
2. New Gift Tax and Banking Relief
The report introduces a new 1% market-value tax on gifted assets (both movable and immovable). This would replace the current system where transfers between immediate family members are tax-exempt.
Conversely, the committee seeks to provide relief to small savers by:
Raising the Excise Duty Threshold: Moving the tax-free limit on bank deposits from BDT 300,000 to BDT 1 million.
Ending "One-Time" Charges: Currently, excise duty is triggered if an account hits the threshold even once a year; the new proposal aims to reduce the burden on middle-class depositors.
3. Modernizing the Tax Base: F-Commerce and VAT
To broaden the tax net, the committee has targeted the growing "f-commerce" sector. They recommend a formal policy framework to ensure Facebook-based businesses, which currently operate largely outside the tax system, contribute to national revenue.
Furthermore, the committee advocated for:
Unified VAT Rate: Moving away from the confusing multi-tier system toward a single, streamlined VAT rate to improve administrative efficiency.
Abolishing the Surcharge: Removing the wealth surcharge for individuals with assets exceeding BDT 40 million.
Removing Minimum Tax: Scrapping the mandatory BDT 5,000 minimum tax for low-income earners to protect small taxpayers.
NBR Response
The National Board of Revenue (NBR) has reacted positively to the report. A senior official noted that the recommendations align with ongoing internal reforms and confirmed that the proposals are under careful review for potential implementation.
