Tax proposed on farmland over 25 bighas

The Land Development Tax Bill 2023 was placed in Parliament on Thursday with a provision of taxation for individuals and families dependent on more than 25 bighas of agricultural land.

Land Minister Saifuzzaman Chowdhury placed the bill and it was sent to the respective scrutiny committee for further examination. The committee was asked to submit its report within 30 days.

As per the proposed law, no tax is required to be paid by individuals or families having up to 25 bighas of land (8.25 acres).

But the tax will be waived for sugarcane and salt farming land and farmers' ponds (excluding commercial fisheries).

Till now, the land development tax has been collected as per Bengali year (Baishakh-Chaitra) but from now it will be collected as per the fiscal year (June-July).

Tax can be paid without penalty from 1 July every year to 30 June of the following year. This law, however, will not be applicable in the three hill districts of Khagrachari, Rangamati and Bandarban.

The bill will repeal the Land Development Tax Ordinance of 1976.

According to the bill, uniform land development tax rates and conditions will be applicable in all cases irrespective of whether the agricultural land is located in a rural area or the municipal area. This tax will be determined every year taking into consideration the land usage situation.

The bill also stipulates that if this tax is not paid for three consecutive years, there will be a penalty of 6.25% per annum from the first to the third year. Tax due at the end of the third year will be recovered through legal means.