Bangladesh is set to enter a new era in land development tax collection from July 1, 2024 with a new timeline set 440 years after the Bengali calendar was introduced in 1584.
According to the Land Development Tax Act 2023, the timeline for collecting land development tax will be aligned with the fiscal year from July 1 to June 30 each year.
This change synchronises the land development tax collection system with the national fiscal year. Previously, the collection period for land development tax was from Baishakh 1 to Chaitra 30 in the Bengali calendar year. It is anticipated that aligning with the fiscal year will simplify and streamline the management of land development tax payments for individuals and organisations. Moreover, assessing the impact of land development tax on the national economy will become more convenient.
The Annual Performance Agreement (APA) for the fiscal year 2024-2025 was signed between the Ministry of Land and its departments and agencies in the conference room of the Ministry of Land under the government’s performance management system.
At the signing ceremony, Chairman of the Land Appeal Board Muhammad Ibrahim; the Chair of the Land Reform Board, Md. Abdus Sabur Mondal, BPAA; the Director General of the Department of Land Records and Surveys, Anis Mahmud; the Director of the Land Administration Training Centre, Md. Arif; and the Controller of Accounts (Revenue) of the Office of the Controller of Accounts (Revenue), Nahida Alam, signed the APA on behalf of their respective departments/agencies. On behalf of the Ministry of Land, Acting Secretery Additional Secretary Ziauddin Ahmed, NDC signed the APA.
Officials from the Ministry of Land and its affiliated departments and agencies attended the APA signing ceremony.
Speaking at the inauguration of Land Service Week 2024 on June 8 this year, Land Minister Narayon Chandra Chanda said, “We firmly believe that this new system will strengthen our country’s 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 (Baishakh 1, 1430), land development tax has been collected 100% online nationwide. The Ministry of Land won the prestigious WSIS Prize 2022 for its land development tax system. Due to digitalisation, land revenue collection has increased more than threefold or over 200 percent. 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.
The first Bengali calendar year was introduced in 1584 AD in Mughal Bengal. However, the official implementation for tax collection started in 1556 (retroactively adjusted to the earlier date). Over time, from the British and Pakistani eras to independent Bangladesh, land revenue or land tax was collected based on the Bangla calendar year. With this new adjustment, after approximately 440 years since de facto 1584, the timeline for land tax collection is changing to meet contemporary needs.
It is worth mentioning 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. Individuals or families owning up to 8.25 acres or 25 bighas of agricultural land 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 organisation from paying land development tax on agricultural or non-agricultural land as specified in the notification.
