High Court orders one-year ban on land development tax at enhanced rates

The High Court has stopped the government from collecting land development tax at enhanced rates for one year.

Tuesday's order by High Court bench of Justice Quazi Reza-Ul Haque and Justice Mohammed Ullah came after hearing a supplementary petition filed by Dewan Abdur Rashid.

Rashid has been leading an agitation in Barisal against the government's decision to levy enhanced rates of land development tax.

The then land secretary Shafiul Alam released a gazette on Jun 30, 2015, increasing the tax rates by two to nine folds, under the Land Development Tax Ordinance.

Rashid challenged the authority it gives to the government to increase tax by issuing gazettes.

The High Court issued a rule after holding hearings on the writ petition on Aug 22, 2016.

It asked the secretaries to law, land and finance ministries along with the deputy commissioner of Barisal to explain why a section from the ordinance would not be repealed for clashing with the Constitution.

But plaintiff Rashid filed a supplementary plea before the rule was resolved. There, he complained that he was being harassed so he would pay tax in new and higher rates.

He also said he has received threats that his assets would be frozen. He explained that he should not have to pay the new rates while the rule is unresolved.

Parliament can authorise an individual to issue orders, policies and regulations, according to Article 65 of the Constitution, said the writ plea.

But financial decision relies solely on Parliament’s authority, according to Articles 80, 81 and 83. The government, therefore, does not have the authority to change tax rates.

“But the land ministry, instead of placing a bill in Parliament, changed the rates using the ordinance," the petition pointed out.