Dhaka South earns Tk125cr in tax from 12 newly-added sectors

Mobile towers, waste collection registration and different fines have all helped Dhaka South earn crores in revenue. These, however, had not always been a source of income.

The Dhaka South City Corporation has registered an income of Tk124.66 crore in less than three years from 12 new revenue generating sectors.

Dhaka South now plans to add 13 more sectors in the new financial year which will be another boost to its coffers.

According to Dhaka South, the tax law allows city corporations to collect revenue from half a hundred different sectors, but the South City hadn't done this before. Once these sectors are identified, they will be levied a tax, while the corporation will also provide them certain services in return.

The income-generation took off when Mayor Sheikh Fazle Noor Taposh took over the mayoral office in 2020 and added five new revenue streams in the fiscal year 2020-21. In that year, Tk33.45crore was added from the five new sectors.

In the financial year 2021-22, the number of new sectors was increased to eight, leading to an additional Tk39.19 crore in revenue.

The number of new revenue generating sectors increased to 12 in FY 2022-23. Till April 2023 of the financial year 2022-23, the revenue from these sectors is Tk50.02 crore.

Speaking to The Business Standard, Dhaka South Mayor Sheikh Fazle Noor Taposh, said, "Our revenue has almost doubled from Tk512 crore in the last three years. As we will collect taxes from the new sectors we have attached, services will also be ensured for those. People's confidence in South City Corporation has returned. I want to achieve the ability of the city corporation to run on its own income."

According to the data provided by the city corporation, the highest income among the newly connected sectors in the last three years is the tax paid for mobile towers. In the last three years, the income from this sector was Tk46.65 crore. The second highest income was from the registration fee of waste collectors, coming to Tk27.18 crore. The third highest came from fines. In the first 10 months of the financial year 2022-23, an income of Tk23.45 crore has been generated due to fines.

Besides, Tk15.76 crore has been collected from Mayor Mohammad Hanif flyover, Tk6.31 crore from tolls, Tk2.28 crores from birth-death registration fees and Tk1.08 crore from hotels.

Besides, new revenue streams to be added in the new financial year (2023-24) include, on application for construction and reconstruction of buildings, private market registration/lease fees, registration of educational institutions/training centres, coaching centres etc , registration of private hospitals, paramedical institutes, clinics, diagnostic centers etc, and registration of marriages among others.

Dhaka South Deputy Chief Revenue Officer Shahjahan Ali said, "We have added several new sectors for the past three years in terms of revenue and as a result our income is increasing day by day. We have been collecting tax from five-star hotels for the past three years. Recently the Hotel Intercontinental started paying us taxes. Besides, policies are being prepared for tax collection from some other sectors.

He also said till now there was no policy for the management of private markets in the city.

"We have formulated policies and issued notifications regarding fees for private market registration. Already the activities of the property department have started. We will collect revenue from the private market from the new financial year."