Sylhet city residents fume over holding tax hike of up to 500 times

Sylhet City Corporation has sparked outrage among residents by raising holding taxes by a staggering 5 to 500 times at a single go. The new tax structure has been slammed as unfair and illogical, with residents demanding its cancellation. 

The outrage stems from a new tax list published on 30 April, following a five-year tax reassessment. The revised rates set the tax at Tk5 per square foot for residences and Tk8 for commercial buildings.

Earlier, the rates were Tk3 and Tk5 respectively, though many paid even less after applying to the mayor.

According to sources in the city corporation's revenue branch, the reassessment included a field survey conducted in 2019-20 that identified 75,430 holdings across the city's 27 old wards. Based on this, a tax collection target of Tk113.27 crore was set.

However, the new tax rates only apply to these older wards, with the 15 newly added wards yet to be assessed.

The city corporation maintains that the new rates reflect the size and type of buildings in the city. However, residents vehemently disagree with the assessment.

Russell Ahmed, a resident of Subid Bazar, saw his annual holding tax skyrocket from Tk800 to a Tk1.64 lakh – a staggering 200-fold increase.

Russell, like many others, argues that his property has not undergone any significant changes in recent years, casting doubts on the reassessment's validity. He accuses the city corporation of setting taxes arbitrarily without proper field evaluations.

This sentiment is echoed throughout the city. City corporation booths set up to inform residents and accept objections have been swarmed by angry citizens expressing their dissatisfaction with the new tax burden.

Rafiqul Haque, a resident and freedom fighter from Ward 26, represents the outrage of many. He points out that the tax hike, ranging between 5 and 500 times, affects nearly one lakh property owners. He calls it "oppression" and demands the cancellation of this "unjust tax."

Since the end of April, various organisations have taken to the streets, demanding the rollback of the tax increase.

The Sylhet Chamber, Metropolitan Chamber, and Sylhet Real Estate Owners Association have all issued statements urging the city corporation to put a halt to the decision and conduct a proper reassessment.

Faced with mounting pressure, Mayor Anwaruzzaman Chowdhury announced a series of measures to address public concerns.

Discussions with civic society representatives will begin next week, and review boards will be formed in all 27 wards to handle resident objections. The deadline for submitting objections has also been extended to 30 May from 14 May. Additionally, assessments in the 15 new wards will proceed.

However, these actions have not pleased everyone. The "Citizens' Society" continues to demand a complete cancellation of the increase, calling the new rates "inhuman." Citizens have threatened further protests if their demands are not met.

The Sylhet City BNP also joined the fray with a human chain protest, calling the tax hike a "death trap" for residents.

The current controversy has spilt over to the previous administration. Ariful Haque Chowdhury, the former mayor, claims the decision to raise the holding tax was made during his tenure but was postponed due to Covid-19 and inflation concerns.

He criticised the current authorities for not holding public hearings before implementing the increase and advised suspending its collection.

The city corporation's Chief Revenue Officer Motiur Rahman Khan reiterated the 30 May deadline for submitting objections and assured residents that decisions will be made through review board hearings.