The Bangladesh Land Developers Association (BLDA) has proposed capping the total cost of land and plot registration at 6 per cent in the FY27 national budget, down from the current 11.5 per cent.
The existing structure includes capital gains tax, stamp duty and local government taxes, which the association said place a heavy burden on buyers and developers.
BLDA also called for reforms in property taxation, saying current mechanisms do not reflect market realities.
At present, a source tax of Tk1,50,000 per decimal is imposed on land transactions regardless of property value.
The association proposed replacing the fixed rate with a 3 per cent tax based on the declared deed value to make the system more equitable and aligned with market transactions.
It also said commercial land valuations in many mouzas do not match actual prices, with transaction data showing selling prices are often lower than government-assessed values.
BLDA recommended a nationwide revaluation of commercial land based on empirical field data across all mouzas.
The association highlighted the lack of fiscal incentives for the secondary property market.
It proposed a 3 per cent registration fee for secondary transactions, which is half of the rate applied to primary sales, saying a stronger secondary market would ensure stable revenue and reflect practices in developed economies.
BLDA also proposed tax holidays to ease pressure on Dhaka and promote balanced urban growth.
It recommended a five-year tax holiday for metropolitan and cantonment areas outside Dhaka and a 10-year holiday for municipal areas to redirect investment to other urban centres.
The association said the real estate sector is facing a severe crisis driven by rising construction costs, higher transport and fuel prices, dollar volatility and a liquidity crunch.
It said falling demand due to inflation and reduced purchasing power has further weakened the market.
BLDA added that global economic uncertainty is also affecting investor confidence and increasing input costs.
Despite the challenges, the association described the sector as a major driver of the economy, with estimated investment of around Tk2 lakh crore and linkages to about 12,000 factories across 450 sub-sectors.
Private developers currently meet around 80 per cent of the country’s housing demand, while nearly 3 crore people depend on the sector for employment.
BLDA said the real estate industry remains a key source of government revenue and plays a central role in national economic growth.
