The New Nation - Internet Edition

ACCORDING to media reports the public works and housing ministry has planned to raise the price of land, possibly by hundred per cent, in a bid to increase non-tax revenue, as official prices of land turned 'unrealistic' while the prices of private lands all over the country was much higher. Justifying the need for hiking land prices in the capital and other cities, land ministry officials said, the government suffers huge revenue loss as land registration fees are charged on the basis of officially set prices of land. A proposal was made accordingly and placed before the council of advisers of the interim government for approval which was not granted due to lukewarm response from the caretaker administration.

The ministry has also prepared a proposal for simplifying land registration for approval. The finance ministry is now reviewing both the proposals. The official land prices were last fixed some 15 years back and these prices were much lower than the present market prices. Besides, the government has planned to increase the per 'katha' land mutation fee to Tk 30,000 from Tk 10,000 in the commercial areas and to Tk 10,000 from Tk 4,000 in residential areas as media reported.

The government earns about Tk 12,000 crore per year as non-tax revenue which is 20 per cent of the total revenue income. It has been stated in the government's medium term budgetary framework that the non-tax revenue income will have to be increased to 15,000 crore by fiscal year 2010. It may be noted that the Washington-based International Monetary Fund, also asked the government to increase the base price for land sales valuation in the city's posh areas.