Circuit house rents revised up after 12 years

Highlights

• The previous rent revision was in 2012
• Single-bed AC room to cost Tk150, up from Tk70
• Double-bed AC room to cost Tk250, up from Tk170
• Rents for officials from corporations and autonomous bodies to be higher
• Private individuals have to pay Tk1,500 for a single-bed AC room
• In high-cost areas, the rates will be slightly higher

The interim government has increased the rent for circuit houses, government-owned accommodations managed by district administrations, by up to 114%, the first revision since 2012.

The Ministry of Public Administration on Wednesday issued a circular announcing the new rental rates for circuit houses across the country, directing district commissioners to implement these rates.

According to the new circular, from now on, government officials and retired government officials can use a single-bed air-conditioned room for a minimum of Tk150, which was previously Tk70. The new rate for a double-bed air-conditioned room has been set at Tk200, up from the previous rate of Tk130.

However, in high-cost areas like Dhaka, Chattogram, Khulna, Rajshahi, Barishal, Rangpur, Sylhet, Narayanganj, Mymensingh, Cox's Bazar, and Gazipur, the rates will be slightly higher. For a single-bed room, the new rate is Tk200, up from the previous Tk90. For a double-bed room, the rate is now Tk250, up from Tk170.

These rates apply for stays of one to three days. Higher rates will be applicable for stays of four to seven days, or more than seven days.

Similarly, officials from statutory bodies, corporations and autonomous institutions will have to pay slightly more. For these officials, the rent for a single-bed room is now Tk200, up from the previous rate of Tk90. For a double-bed room, the rate is now Tk300, which was Tk110. Officials in this category will also incur higher expenses when using circuit houses in high-cost areas.

Private individuals will now have to pay Tk1,500 for a single-bed air-conditioned room and Tk1,800 for a double-bed air-conditioned room at circuit houses in all cities and towns. Previously, the rates were Tk700 and Tk1,400, respectively.

According to officials familiar with the matter, the increase in circuit house rents was based on an analysis of which levels of officials use these facilities the most.

Officials in grades nine to six travel more frequently at the district level for inspection and investigative purposes. Their income levels and main areas of expenditure were taken into account.

Additionally, the government's adjustments to daily allowances and travel allowances were considered. The new rates were also set based on feedback from divisional commissioners, deputy commissioners, and inter-ministerial meetings.

Rents revised to boost non-tax revenue

An official in the public administration ministry, speaking on condition of anonymity, told TBS that the increase in circuit house rents is part of the government's initiative to boost non-tax revenue.

"The previous rates were set in 2012. Since then, the country's economic situation has improved, and the pay scale for government officials has been revised. Additionally, the prices of goods and services provided to guests at Circuit Houses have increased, as have the maintenance costs. Taking these factors into account, the rent rates have been newly adjusted," he explained.

According to the officials, there are two- or three-storey circuit houses under the jurisdiction of the deputy commissioner's office in each district. Ministers, members of parliament and high-ranking government officials often stay overnight and hold various important meetings there.

With the increase in the scope of government work, officials often travel from one district to another. Circuit houses are used for managing the protocol of state dignitaries. They are also selected as accommodations for foreign guests.

To facilitate this, the government has improved the infrastructure and service standards of circuit houses across the country. Many circuit houses now offer amenities comparable to those of star-rated hotels.

Due to the increasing demand for circuit houses, the government initiated a project in 2018 for the upward expansion of circuit houses in 37 districts. The Ministry of Housing and Public Works implemented the project at Tk171 crore.

A deputy commissioner told TBS that there is no correlation between the rent and the services provided at circuit houses.

"The circuit house is part of state work, akin to an employee's office or office furniture. Government officials feel safe and secure staying there. The environment, type of food, and management are consistent with the lifestyle and work of government employees," he explained.