Written by The Banking Post
The government is considering reintroducing a wealth tax through Bangladesh’s online tax return system, aiming to automate asset reporting, ease compliance and reduce manual assessments.
Officials said the proposed tax could be announced in the upcoming national budget for the next fiscal year.
Under the plan, financial assets such as bank deposits and cash holdings would automatically appear in taxpayers’ online returns through digital system integration. Immovable assets, including land and property, would be assessed using official mouza-based valuations set nationwide.
“There will be no separate manual assessment for wealth tax, which often leads to harassment,” a senior revenue official said.
Authorities are also considering valuation methods that avoid direct market pricing. Rental properties may be assessed using a multiple of rental income, while residential assets could be valued based on declared construction costs.
To limit the burden, total liability from income tax and wealth tax combined may be capped at one-third of an individual’s annual income, officials said.
Bangladesh abolished the Wealth Tax Act of 1963 in 1999 due to valuation complexities and later replaced it with a wealth surcharge.
Tax experts say reintroducing the levy could help raise revenue, but only if structural weaknesses are addressed first.
One expert warned that valuing illiquid assets—such as inherited homes or stakes in private companies—could trigger disputes and force taxpayers to sell assets to meet obligations.
He also noted the lack of interoperability among national asset databases, saying implementation would remain difficult without integrated digital registries.
Another former tax official estimated that a properly designed wealth tax could generate an additional Tk 100 billion annually. He suggested starting with high-value areas such as Gulshan, Banani and Dhanmondi, where many affluent property owners hold legacy assets.
Revenue data show the current wealth surcharge generates modest returns. The National Board of Revenue collected Tk 2.96 billion in surcharge revenue through February this fiscal year. In FY23, more than 50,000 taxpayers paid Tk 6.95 billion under the system.
Analysts say the success of any new wealth tax will depend less on rates and more on fair valuation, digital transparency and strong enforcement.
