Politics
Dhaka Caps Property Tax Hikes at 4,800 Taka Annually, Adds Electricity Rebate
The July 7 decision limits average annual tax and utility cost increases to 4,800 taka for most Dhaka households starting in August.
How we reported this
The Dhaka North City Corporation council approved the 2026-27 budget on July 7 with a 12-5 vote that caps holding tax increases at 2 percent and introduces a 500 taka monthly electricity rebate for households using under 300 units.
The measures address household expenses at a time when national inflation data from the Bangladesh Bureau of Statistics shows food and energy prices rose 7.8 percent in the year to May 2026. City officials tied the changes to the Local Government (Household Relief) Ordinance 2026, which applies across 36 wards north of the Buriganga River.
Effects on Daily Household Expenses
Residents in areas such as Mirpur and Uttara will see the cap applied to their annual holding tax notices mailed in October. A typical three-bedroom home assessed at 25 lakh taka will face an increase of no more than 5,000 taka instead of the 12,000 taka rise calculated under the previous formula.
The electricity rebate will appear as a credit on bills issued by the Dhaka Electric Supply Company beginning with the August cycle. Households that qualify must register through the city corporation website or ward offices by July 25, with verification based on the last three months of consumption records.
City budget documents project that 1.2 million households meet the usage threshold, producing combined annual savings of 3,200 taka on average when the tax cap and rebate are combined. Policy analysts note the figures derive directly from the 2026-27 revenue estimates released on June 30.
Implementation begins August 1, with the first rebate credits scheduled for September statements and tax assessments adjusted at the time of payment. The corporation will publish a quarterly compliance report starting in October that tracks uptake rates by ward.