With the economic activities returning to normal following withdrawal of pandemic-related restrictions, the transfer of land property has reportedly gained pace. Interestingly, unlike other sectors of the economy, sale and purchase of land and land-related property did not stagnate during the lockdowns. On this score, those in the know at the government's land registration department are of the view that a temporary Covid-time halt in the flight of capital has played an important role in this connection. Unsurprisingly, as soon as near normal life resumed in the post-lockdown days, the transfer of land including houses also saw a surge.
Expectedly, the earning from such land transfer is going to contribute substantially to meet the government's non-NBR, tax-revenue target. At this point, it is further hoped that the target of non-NBR revenue amounting to Tk160 billion for the fiscal year (FY) 2021-22 could be reached ahead of the schedule. This is obviously a refreshing piece of news for the government exchequer, especially, at a time when the economy in general has otherwise been adversely impacted by the pandemic. Considering the performance of this sector in the previous fiscal years, such a robust showing this time is something to write home about.
For every fiscal year, generally, the government earns, on an average, to the tune of Tk 100 billion from this sector. According to the Directorate of Registration, in FY 21, for example, when the pandemic was raging, the government's income from the transfer of lands and apartments was to the tune of Tk 123 billion. Whereas in the previous financial year, the fees charged on the transfer of lands and the taxes payable to the local government together accounted for 82 per cent of the state's non-NBR revenue target worth Tk 150 billion. As expected, land transfer fees constituted the lion's share of the earning.
But why has the government's revenue from this sector witnessed such a rising trend in the recent years? Going by what the Inspector General of Registration told this paper, the rise in revenue has to do with a spurt of land sale in recent times. According to him, the factors leading to the bullish trend in the land property market include the overall economic recovery, an increase in the volume of remittance by the expatriate workers and a reduction in the registration-related costs.
Notably, the pandemic-time surge in remittance by expatriate workers intrigued many including experts for sometime. But now it is clear that the migrant workers abroad who remitted their money and those who returned home during the pandemic invested a sizeable portion of their savings in land purchase. Perhaps, it explains to some extent why the land transfer activities remained vigorous during the pandemic. Apart from the prestige that land enjoys as an asset in local culture, the lack of diverse avenues to put their money in is also a push factor that draws them into the land property market.
However, the expatriate workers are not the sole driver for the upturn in the sector. Among other drivers, some pointed out, are the holders of undisclosed money. Evidently, the latter grab the opportunity to whiten their unearned income. To exploit the full potential of the land transfer regime, it would be necessary to rid it of the encumbrances including corruption it is plagued with. Hopefully, the government would start its work in this direction in earnest.