Stamp duties to increase up to 300pc
The rate of stamp duty, which has been unchanged for a decade, is going to increase by up to 300 percent from the next fiscal year as the government aims to boost revenue collection from this source to finance part of its Tk 678,064 crore budget and keep borrowing within its target.
As part of the initiative, Finance Minister AHM Mustafa Kamal in the Finance Bill-2022 proposed changes to the stamp duties on 46 types of functions.
The government wants to collect Tk 13,879 crore from the sale of stamps, which is 12 percent higher than the revised target of the outgoing fiscal year. The new target is more than four times higher than the actual collection of Tk 2,906 crore in FY2020-21.
To attain the goal, the minister in parliament on Thursday proposed hiking the lowest rate of stamp, used for the acknowledgement of a debt of up to Tk 50,000, to Tk 20, up by 100 percent from the present duty.
If anyone wants to enter a partnership deal involving more than Tk 1,00,000, then he will have to spend Tk 4,000 to buy the required stamp for the agreement, up from the current duty of Tk 2,000.
Signing of a divorce deal will also be more expensive as the duty of the stamp required for this purpose will rise by 300 percent from the next fiscal year.
Currently, divorce registration requires a stamp worth Tk 500. But in the proposed bill, the stamp duty has been fixed at Tk 2,000.
To sign a deal for power of attorney, the cost of stamp of Tk 500 will increase by 60 percent to Tk 800. The stamp required for obtaining loans, advances or any other credit facilities from any scheduled bank will cost an individual Tk 2,000, up from Tk 1,000.
For affidavits, a person will have to spend Tk 300, up by 50 percent from the current duty for the same stamp.
However, the mortgage deed in favour of a bank or a financial institution in respect of a loan will be cheaper as per the proposed bill.
Currently, the cost of stamp of a mortgage deed of up to Tk 20 lakh is Tk 2,000. But in the proposed bill, the price of a mortgage deed of up to Tk 50 lakh will be Tk 2,000.
In his budget proposal, the finance minister on Thursday told parliament that the stamp duty rate has not been changed since 2012 although it can be a potent source of revenue.
"Considering our current state of development, increased per capita income, inflation over the years and other economic realities, the stamp duty rate charged is quite low," he said proposing for raising the rate of stamps.
Kamal said this will facilitate earning more revenue from this source and also make the stamp duty rate practical and realistic.