Ctg city sees record revenue collection but falls short by Tk81cr in holding tax
According to CCC accounts, the revenue collection target from holding tax for FY25 was Tk390.36 crore, but Tk309.28 crore was collected—a 79% realisation rate, leaving a deficit of Tk81.07 crore
Despite record revenue collection in the 2024-25 fiscal year, Chattogram City Corporation (CCC) has fallen short by over Tk81 crore in holding tax, with officials attributing the shortfall largely to political influence and non-compliance by powerful individuals and institutions.
According to CCC accounts, the revenue collection target from holding tax for FY25 was Tk390.36 crore, but Tk309.28 crore was collected—a 79% realisation rate, leaving a deficit of Tk81.07 crore.
From private holdings alone, the collection rate was even lower.
Against a target of Tk160.48 crore from 2,17,195 private holdings, Tk109.91 crore was realised—68% of the target.
Keep updated, follow The Business Standard's Google news channel
In contrast, revenue from 1,530 government holdings reached 87% of the target, with Tk199.36 crore collected against a target of Tk229.87 crore.
In the previous fiscal year (2023–24), only 54% of the holding tax target was achieved, with Tk208.80 crore collected from a target of Tk384.75 crore.
One prominent example of outstanding dues is the 'Epic Angan' apartment complex on Chatteshwari Road. The holding tax arrears for 99 flats amounted to Tk85 lakh.
Since the shift in political influence last August, Tk50 lakh has reportedly been paid, but around Tk35 lakh remains unpaid.
Rafiqul Islam, manager of Epic Angan, told The Business Standard, "Our holding tax was not paid for various reasons. The amount has increased over time. We have already paid a large portion of the arrears and hope to pay the rest within this month."
Currently, there are 2,18,726 registered holdings and 1,26,834 trade licences in the CCC area, both considered major sources of revenue.
In total, CCC collected Tk456.68 crore from nine revenue sectors in FY2024–25, the highest in its history.
Of this, municipal taxes contributed Tk309.28 crore, trade licence fees Tk26.18 crore, and land transfer tax Tk78.81 crore.
Other sources include advertisement tax (Tk55.22 lakh), shop sign fees (Tk5.42 crore), entertainment tax (Tk11.62 lakh), vehicle fees (Tk8.82 lakh combined), estate fees (Tk35.61 crore), and miscellaneous income (Tk59.16 lakh).
Despite this achievement, CCC officials say the collection could have been much higher if compliance had improved.
According to revenue department figures, 82 individuals and institutions collectively owe Tk18.58 crore in holding tax. CCC is also owed Tk20 crore in unpaid rent from its 40 markets.
Explaining the challenges, CCC Chief Revenue Officer SM Sarwar Kamal said, "This time our tax collection has improved. We are working to increase it further. Unlike other government agencies, we do not confiscate property. We try to collect dues by engaging with residents—sending letters, making calls, and even reaching out through the mayor if needed."
Related sources said that many people do not treat holding tax with the same importance as utility bills. Since the city corporation is a public welfare organisation, legal action is rarely taken.
Moreover, the inability to ensure equal civic services across all city areas also affects tax compliance.
CCC recently announced a Tk2,145.42 crore budget for FY2025–26, targeting Tk1,045.21 crore in income from its own sources. The remainder is expected from government grants.
The city corporation currently has a total debt of around Tk400 crore, which includes dues to contractors, retirement benefits, and unpaid electricity bills for streetlights.
