Holding tax self-assessment
M A Hashem, Mirpur Road, Dhaka
The DCC has engaged a 4,500 strong force of NCC boys for door-to-door delivery of holding tax self-assessment forms and collection of the same after completion by the house owners. It is quite difficult and a real harassment to complete the complicated form with all the supporting papers within the given time.The Mayor says the purpose of this crackdown sort of move is not to increase holding taxes but to bring under tax net the new houses that have been built over the past 14 years, about the number of which the DCC has no accurate statistics. But how could that happen since attaining a holding number from the DCC is obligatory for every new construction? In the very first place, utility connections will not be provided by the authorities concerned without the holding number and address. And if only the newly built houses are the targets then why the forms are being given to those who are already in the tax register! To eliminate corruption in collecting holding taxes, rates have to be reduced to reasonable and bearable levels, specially for the fixed income group in the lower ladder. Consider the case of a retired official who has built a modest 4-storey house with a 3-bed-room flat in each floor, taking HBFC loan of Tk. 15,00,000/-. If the house fetches a rent of 4X6,000/- = Tk. 24,000/- per month, its annual holding tax would be around Tk. 17,000/- allowing deduction for the payment of interest on the loan. It is not understood why the principal component of the loan installment is not deducted in assessing holding tax or income tax, at least on human consideration. The hard fact in this case is that the loanee's total monthly loan re-payment installment would be about Tk. 16,000/- (interest + principal). So he is actually left with only Tk. 8,000/- which is hardly enough for even a frugal living. And there is no certainty of this amount also, because quite often flats remain vacant for months, or tenants do not pay rents duly. In this situation, how can he bear the heavy load of taxation? Lastly, it should be observed that in order to solve the perennial problem of fund shortage, the honorable Mayor must eliminate embezzlement, misuse and wastage of funds first. *** A neighbour of ours has erected a semi-pacca structure on the sweeper passage adjacent to his and my residential buildings, leaving no space for the sweeper to be able to clean the drain. As a result, the drain that passes through our neighbourhood remains clogged with soil, dirt and overgrowth of weeds, and bushes making it a superb breeding ground of mosquitoes of all types. The gentleman was requested to remove the obstacle several times verbally and through written communication. But he would not listen. The less said about the haughty attitude of the gentleman, the better. Later, the matter was duly brought to the notice of the regional office of the City Corporation on 25th October 2003 in writing with copies to all concerned, but to no avail. The matter was also brought to the notice of the chief health officer of the DCC. Failing to get redress for our trouble, we called up the Chief of the Health on telephone. He assured us that he would take necessary action. Still nothing happened. Then we went over to see the Chief himself. His attendants would not let us in on one pretext or the other. One day a sanitary inspector and our neighbour visited us in our home. I took them to my roof to see for themselves the situation on the ground. He had no answer to the problem at hand excepting a little advice that we patch up our disagreement between us, though he did not offer any remedy in making the smelly-clogged drain free of mosquito and dirt. We wonder if the Conservancy Department has any role to play in the maintenance of the drain. If it takes nine months to get this small piece of information, then we wonder how long will it take to get the job done, if at all the Conservancy Department is the right agency for the job, or we may be shunted again to somebody else. Is there anybody from the Local Government who could shed some useful light on this confusing state of the DCC? Syed Waliullah, Mohammadpur Housing & Pisciculture Society Ltd., Dhaka - 1207 ***This refers to Mr. Karim's interview with the city Mayor (DS: 25 July). I feel that if particulars of new holdings were the objective as explained by the Mayor, there was possibly an easier and less troublesome way to do it. I believe almost all trading establishments have a trade license, including all apartment builders. If they would have been asked all the particulars about their premises the same information could have been made available in a more normal manner without raising an undue hue and cy. This would have covered more than eighty percent of the new holdings. The balance holdings could then have been enumerated through any professional organisation under DCC's direction. This cost could have easily come from the extra returns from more than eighty percent of the new holdings identified. S. A. Mansoor, Gulshan, Dhaka.
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. PHOTO: Syed Zakir Hossain |