E-mutation upgrade to track actual land use, boost tax

The government is set to introduce a system to update land classification records whenever ownership is transferred through mutation, aiming to ensure proper land valuation and prevent revenue losses caused by outdated records.
The Ministry of Land has directed the Land Management Automation Project to add a new facility to the e-Mutation system so that a plot’s actual land classification, locally known as “shreni”, is recorded in the mutation record (khatian) when a transfer is approved.
Md Emdadul Haque Chowdhury, additional secretary at the ministry, confirmed the development to the Daily Sun.
He said it would take around five months to make the necessary changes to the software. “Once the system starts, the revenue coming from the sector will jump to a large extent,” he said.
The move follows a long-standing problem in land administration: classifications recorded in official documents often do not reflect the current use of land.
For example, Mohammad Selim, a resident of Rasulpur in Kamrangirchar, bought around five decimals of land at Bolsuta in Keraniganj several years ago. Although the land was being used as homestead (bhita), it was deeded as arable land (naal) because the last khatian, the RS record, classified it as arable.
Selim subsequently had the land mutated under the arable classification. He later sold it to his elder sister, and the land was again registered and mutated as arable.
The sellers, buyers, sub-registrar, assistant commissioner (Land), union land officer and other officials involved were not at fault, as they had followed the existing rules, a senior land ministry official said.
However, the government lost revenue because registration fees for homestead land are almost twice those for arable land, the official said.
According to a ministry order, landowners frequently change the use of plots, including converting agricultural land into residential or commercial property. Such changes, whether made gradually or by the owners, are rarely reflected in official records.
As a result, officials cannot accurately determine the value of land during registration and other transactions when the recorded classification is outdated.
The ministry said this has caused substantial revenue losses because land development tax and registration fees are linked to a plot’s recorded classification.
Under the existing system, anyone acquiring land through purchase or inheritance must apply for mutation to formally record the change of ownership. 
The ministry sees this process as an opportunity to update classification records because applicants are already interacting with the land administration system.
But the existing e-Mutation software has no mechanism to capture or update land classification during mutation, meaning the opportunity is routinely missed.
Citing a policy meeting held on 25 August on changes to land classification, the ministry formally instructed the project director of the Land Management Automation Project on Wednesday to introduce the new functionality.
Once implemented, the system will record the actual, on-the-ground classification of a plot in the mutation record when an application is approved.
Officials expect the reform to improve land valuation, ensure proper collection of land development tax and increase government revenue.
Signed by Sadequr Rahman, deputy secretary of the ministry, the order was sent to all deputy commissioners and assistant commissioners (land) across the country, except those in the three hill districts.