The Prime Minister has also directed relevant authorities to pay close attention to ensure that third gender people are not deprived in the distribution of inherited property
- Automatic land mutation within eight days of deed, no application required
- Municipal tax on real estate registration in Dhaka's two city corporations and Chattogram City Corporation areas dropped from 2% to 1%
- The decisions to play key roles in creating a conducive business environment, says BIDA
To ease the country's business environment, the government has approved a proposal of automatic mutation within eight days of drawing up land deeds, a move which, is believed, will save entrepreneurs' time and money, and simplify land purchase complexities.
A cabinet meeting chaired by the Prime Minister Sheikh Hasina on Monday approved the proposal of automatic mutation via coordination with the Sub-Registrar Office and Assistant Commissioner (Land) Office once the land is deeded.
"It is a landmark decision," Cabinet Secretary, Khandker Anwarul Islam told a news conference after the meeting. "It will bring relief to all parties, including investors and the public at large, reduce harassment, and save valuable time spent on mutation and land-related cases."
He also said the system has been launched in 17 Upazilas. It may take a year for the new registration and mutation system to be fully functional across the country.
Meanwhile, the Ministry of Local Government and Rural Development has dropped the municipal tax - on registration of flats and plots, including land, office space and factories, under two Dhaka City Corporations and Chattogram City Corporation - from 2% to 1%. Bangladesh Investment Development Authority (BIDA) and sector players opined this will also reduce costs incurred by businessmen.
In the interest of creating a conducive business environment, the government's high-level committee, headed by the Cabinet Secretary, made the key decision regarding automatic land mutation within eight days of purchase, also reducing municipal tax by 50% in the three aforementioned City Corporation areas.
During the committee's last meeting held last September, the Cabinet Division had requested it to take steps to implement the decisions quickly.
BIDA Executive Chairman, Sirazul Islam said the two decisions would play an important role in creating a conducive business environment.
He also said that these issues had been raised during various meetings. Thanks to the Cabinet's approval, the automatic mutation proposal will come into effect shortly. Meanwhile, the Local Government Division has already issued a notification reducing the municipal tax.
Liakat Ali Bhuiyan, former first vice president of the Real Estate and Housing Association of Bangladesh (REHAB), said both decisions are crucial. The housing sector, specifically buyers of office spaces, flats or plots will directly from the municipal tax cut decision.
With regards to land registration and mutation, the Cabinet Secretary said the land deed is drawn up by the Sub-Registry Office under the Law Ministry, while the mutation is done by the Assistant Commissioner, Land Office under the Land Ministry. This new decision will ensure easier coordination between the Sub-Registrar Office and the Assistant Commissioner (AC), Land Office.
He also said that the online database of AC Land offices has archived about 4.30 crore khatians (records of rights) of land. The Sub-Registry offices will now be able to refer to the database to verify these khatians prior to drawing up the land deed.
AC Land offices will also have instant online access to the specifics of a land deed and receive a hardcopy of the land document. Therefore, it will take a maximum of eight days for the AC Land office to mutate the land after the deed has been drawn up, said the Cabinet Secretary.
He said that for the time being, the software will only reflect data about land purchases and sales, with provisions being made to archive information on inherited property as well.
The cabinet secretary said that the Prime Minister had also directed relevant authorities to pay close attention to ensure that third gender people are not deprived in the distribution of inherited property.