Rajuk seeks fivefold hike in construction approval fees
Land-use clearances and renewal fees are set to rise fivefold as well, from Tk1,000 to Tk5,000
Highlights:
- Government proposes up to fivefold hikes in building approval and land-use fees.
- Plan approval and clearance charges may rise from Tk1,000 to Tk5,000.
- New Tk5,000 per katha fee introduced for multi-unit residential blocks.
- Fees will be based on land size and building use, increasing overall construction costs.
The government is moving to revise Dhaka's Building Construction Rules 2008, proposing fee hikes – in some cases up to fivefold – for building design approvals, land-use clearance, renewals and related services. The changes, officials say, could push construction costs higher for private homes, apartment projects and commercial buildings across the capital.
Under the draft Construction Rules 2025, fees for plan approvals, extensions and land-use clearances are set to jump from Tk1,000 to Tk5,000. A new charge of Tk5,000 per katha has been proposed for multi-unit residential block applications.
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On 18 November, the Ministry of Housing and Public Works sent a letter to the Ministry of Finance, seeking approval for the revised fees, following recommendations from the Rajdhani Unnayan Kartripakkha (Rajuk), Dhaka's development authorities.
The letter, seen by The Business Standard, states that the government intends to adjust fees in line with current socioeconomic conditions. A senior finance ministry official said the revisions are part of a broader effort to boost non-tax revenue.
Once the finance ministry signs off, the housing ministry is expected to issue a gazette notification to bring the new rules into effect.
A Rajuk official said the higher fees would significantly increase approval-related expenses, particularly for standalone residential projects. For a 10-storey building with two units on a 5-katha plot, the cumulative increase could amount to Tk1-1.2 lakh, he said.
The existing Building Construction Rules 2008 apply mainly to Rajuk-regulated areas in Dhaka and govern approvals for building design, construction, renovation and demolition. Every approval, renewal or appeal currently requires a fixed fee paid to Rajuk.
Abdul Latif, co-vice president of the Real Estate & Housing Association of Bangladesh (REHAB), said the hikes would disproportionately affect individual homeowners compared to real-estate developers.
"Approval for a 5-katha plot now costs Tk5,000; under the new rules that becomes Tk25,000. In an apartment project with 20 flats, the additional cost per flat is barely Tk1,250. But for someone building a five-storey home, an extra Tk1-1.5 lakh in approval costs can be a serious financial burden," he said.
Adil Mohammed Khan, president of the Bangladesh Institute of Planners (BIP), said fee increases must be justified and proportionate.
"Fees should remain within the means of service recipients. Rajuk should ensure timely and corruption-free service delivery first," he said. "Fees have gone up before, but bribery by some officials continued. If services improve, people will not object to paying more."
Proposed changes: Fees, building categories, exemptions
Under the proposed 2025 rules, fees for building plan approvals, appeals, and extensions are set to rise from Tk1,000 to Tk5,000. Fees for land-use clearance, appeals, and renewals will see a similar hike to Tk5,000, up from the current Tk1,000.
A new fee of Tk5,000 per katha has been proposed for multi-unit residential block applications. For mixed-use buildings, the higher applicable fee will apply for design approvals.
The proposed rules also clearly define building categories. Residential buildings are now divided into six categories based on size and usage, while educational institutions fall into three categories. Separate fees will be determined for commercial establishments, industrial factories, healthcare facilities, warehouses, and parking buildings.
While the 2008 rules set fees based solely on land size, the new rules consider both land size and use. Fees will range from Tk50 to Tk150 per square metre of floor area, depending on the type and purpose of the building.
In addition, building construction approval fees will now be determined based on the total floor area of all storeys in a building. For a floor area of up to 50 square metres, the approval fee will be Tk175. The range of floor areas has been divided into 16 categories, with the maximum considered area being over 3,000 square metres. For any building with a total floor area of 3,000 square metres or more, the construction approval fee will be Tk3,65,000.
However, the hill-cutting approval fee was kept unchanged at Tk30,000. Similarly, the pond excavation fee remains at Tk10,000, and fitness certificates and certificate renewal fees remain at Tk1,000.
Meanwhile, the application fee for special project clearances and appeals has been abolished in the proposed rules; previously, each application required a fee of Tk10,000.
Other fees under the proposed rules include wall construction approval at Tk20 per square metre, with a minimum of Tk2,000; billboard installation approval at Tk50 per square metre, minimum Tk5,000; and reservoir construction approval at Tk100 per cubic metre, minimum Tk10,000.
Construction approval fees will not apply to religious worship places such as mosques, temples, pagodas, and churches. However, no part of these structures can be used for purposes other than religious worship or ancillary activities.
