Dhaka, Jan 30, 2026: A government-appointed committee has recommended reducing registration costs for flats and land purchases by 50 percent, a move aimed at easing the financial burden on property buyers and encouraging formal property transactions.
The recommendation was made by the National Tax Structure Reorganisation Committee, which submitted its report to the Chief Adviser earlier this week. The committee is chaired by Zaidi Sattar, Chairman of the Policy Research Institute (PRI) of Bangladesh.
At present, registration-related taxes and fees for flats and plots in Dhaka amount to about 12.5 percent of the property value. This means registering a property worth BDT 10 million currently costs around BDT 1.25 million. The committee has proposed cutting this cost in half.
Proposal on Gift Tax for Property Transfers
The committee has also suggested imposing a 1 percent tax on the market value of both movable and immovable assets transferred as gifts. Currently, transfers of money and property among close family members—such as parents, spouses, children, and siblings—are exempt from tax.
NBR Says Recommendations Will Be Reviewed
A senior official of the National Board of Revenue (NBR) welcomed the proposals, describing them as constructive. The official said the revenue administration is undergoing major reforms and that the committee’s recommendations would be reviewed carefully.
Breakdown of Current Registration Taxes
At present, advance income tax on land or property transfers is charged at different rates depending on location:
# 5 percent in Dhaka and Chattogram city corporation areas
# 3 percent in other city corporation areas
# 2 percent in municipal areas
In addition, buyers must pay stamp duty of 1.5 percent, registration fees of 1 percent, local government tax of 3 percent, and VAT ranging from 2 percent to 4.5 percent.
For flats between 1,000 and 1,600 square feet, VAT is set at 2 percent, while larger flats attract 4.5 percent VAT. Land and plots are subject to 2 percent VAT. As a result, registering a flat under 1,600 square feet in areas such as Gulshan costs about 12.5 percent in total.
Recommendation to Waive Excise Duty on Bank Deposits
The committee has also proposed removing excise duty on bank deposits of up to BDT 1 million. Currently, deposits exceeding BDT 300,000 are subject to a minimum excise duty of BDT 150, while balances between BDT 1 million and BDT 5 million attract a duty of BDT 3,000.
The proposal suggests raising the exemption threshold from BDT 300,000 to BDT 1 million.
Under existing rules, if a bank account balance reaches the threshold even once during a calendar year, excise duty is charged, regardless of how many times the amount is reached.
Bringing Facebook-Based Businesses Under Tax Net
The committee has recommended bringing Facebook-based businesses under the tax system. Many entrepreneurs currently sell products through social media platforms without formal registration.
To address this, the committee proposed developing a specific policy framework to include f-commerce activities within the tax structure.
Surcharge and Minimum Tax Reforms
At present, individuals with assets exceeding BDT 40 million must pay a surcharge based on their income tax amount. The committee has recommended abolishing this surcharge.
It has also suggested removing the mandatory minimum tax of BDT 5,000 for taxpayers who have taxable income slightly above the tax-free threshold, arguing that the rule places undue pressure on small taxpayers.
Move Toward a Single VAT Rate
The committee further proposed transitioning toward a single VAT rate instead of the current multi-tier system. Although the standard VAT rate is officially 15 percent, reduced rates apply across various sectors, making the system complex and difficult to administer.
According to the committee, a unified VAT rate would simplify compliance and improve efficiency in the tax system.
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