Ctg homeowners resent rent-based holding tax

Shah Alam used to pay Tk 20,000 as holding tax per year to the Chittagong City Corporation (CCC) for his three-storey building at Muhuri Para in Uttar Agrabad area. But after the recent reassessment, his holding tax now stands at Tk 1.5 lakh.

Terming it inconceivable, he said, “If the tax realisation is so high, we have to leave our own home. If I'm to pay this exorbitant amount, I won't be able to maintain my living standard.”

Homeowners in the port city are in panic after the CCC's recent reassessment that will collect holding tax based on house rent.

Earlier, the authorities collected the holding tax as per the size of the establishment but during the ongoing tax reassessment, which ended in this year's August, they proposed the change.

Seeking anonymity, an official of the CCC revenue department said the previous system was unable to assess the true valuation of a building as it was done mostly based on estimation.

In the earlier system, there was no specific guideline on how to realise holding tax. CCC used to collect tax based on per square feet (Tk 1 to Tk 5) of a respective building depending on the locality, the official added.

Homeowners have been opposing the CCC move since the rent-based reassessment, saying the tax amount is much higher and its impact will also fall on the tenants.

Venting his frustration to The Daily Star, Mir Tarek, a resident of Mirpara, said, “I used to pay Tk 25,000 as holding tax for my three-storey building. Now CCC demands Tk 3.4 lakh as holding tax, which is illogical in every sense.”

A platform of homeowners, “Kordata Surokkha Parishad” (taxpayers' protection council) has been staging demonstrations against the reassessment and demanding that the CCC restore the previous system of realising the holding tax.

As a protest, homeowners would lay siege to the offices of 10 ward councillors today. The sit-in programme was declared at a press conference held at Chittagong Press Club yesterday organised by the Parishad.

Amir Uddin, the platform's general secretary, said due to the reassessment, the holding tax would be around 10 to 15 times more. “It will inflict a huge burden on the homeowners.”

“We are paying income taxes to the National Board of Revenue (NBR). If CCC also imposes tax on our income, it will be like a double taxation, which is not fair,” he said.

The taxation ordinance that CCC is now following was formulated in 1986 during the military regime. The regime was declared illegal by the Supreme Court through a verdict on the seventh amendment to the constitution. So, the taxation ordinance should also be declared illegal, he said.

Contacted, Dr Muhammad Mustafizur Rahaman, CCC chief revenue officer, said they had assessed the tax within the law. The “Ideal Tax Schedule”, which was in function since 2016, allowed the CCC to determine the holding tax, he said.

“If homeowners deemed it unjust, they can appeal to the CCC review board.” The board would consider it based on the homeowners’ financial condition, he added.

Ruling out the allegation of double taxation, he said the authorities realising income tax do not provide the service CCC renders to the city dwellers. To ensure civic facilities, CCC must be financially solvent.

The reassessment process started in March 2016. It found 1.85 lakh holdings in the port city, 28,702 more than the previous year. CCC has set a target of realising Tk 851 crore as holding tax for the fiscal year 2017-2018, according to its sources.