The government has lowered the tax on immovable property transfer to 1 per cent from 2 per cent of the total value from 1 December 2020 for companies located in three city corporations in Dhaka and Chattogram.
A gazette notification was issued by Local Government Division of the local government, rural development and cooperatives ministry last Thursday in this regard.At present, there is 2 per cent transfer tax on the total value of immovable properties, sources said.
“The new decision coupled with some previous measures will have a positive impact on the real estate business,” former Real Estate and Housing Association of Bangladesh first vice-president Liakat Ali Bhuiyan said. The overall cost for registration of land and apartment would come down due to the tax cut, he said.
Earlier in July, the law ministry reduced the registration fee to 1 per cent from 2 per cent of the total price of land or flat.
The benefit will be applicable only to the company-to-company transfer of immovable property in Dhaka South City Corporation, Dhaka North City Corporation and Chattogram City Corporation, according to the notification.
The new tax rate will come into effect on December 1, it said.
After the change, businesses in the three city corporation areas will enjoy a reduced rate of transfer tax, which will cut the cost of doing business, the ministry sources said.In December 2019, the Internal Resources Division of the finance ministry halved the stamp duty on property registration to 1.5 per cent from 3 per cent of the transfer value.