Chittagong Port and the City Corporation Face Off Again Over Property Tax

News Desk    |    ০২:২৯ পিএম, ২০২৫-০১-০৮

A dispute over property tax has once again arisen between the Chittagong Port Authority and the City Corporation. During the tenure of former mayor Mohammad Rezaul Karim Chowdhury, the property tax for the port was set at 50 crore taka. However, the Chittagong City Corporation is now demanding 160 crore taka as property tax from the port authority. The City Corporation recently sent a letter to the port authority requesting the payment of this amount. This demand has brought the 25-year-old property tax dispute with the port back to the forefront.

The City Corporation hopes that the port authority will pay the property tax as per their demand. However, the port authority claims that they have been paying the property tax according to the rules. The City Corporation has now redefined the property tax rate, and the port board will make a decision on the matter.

In the letter sent to the port, the City Corporation mentions that most of the roads in Chittagong have a capacity of 6-10 tons, but trucks, lorries, and other vehicles carrying loads of 50-60 tons are damaging the city's internal roads. In particular, the roads leading to the Chittagong Port are being continuously damaged. Due to heavy vehicles, regular wear and tear of roads and culverts is causing severe traffic jams and difficulties for the city's residents. The City Corporation emphasizes that managing the roads for the public's movement is one of its responsibilities, and the repairs require a substantial amount of funds, which it is not capable of providing on its own.

On December 15 of last year, the Chief Executive Officer of the City Corporation, Sheikh Muhammad Touhidul Islam, sent a letter to the port authority requesting payment of 115 crore taka in arrears for the current year.

According to the City Corporation, during the tenure of former mayor A.Z.M. Nasir Uddin, a reassessment of the property tax was conducted for the fiscal year 2016-17. The tax was recalculated based on the rental value of the properties, and the property tax for the port authority's buildings was determined to be 160 crore (16 lakh taka). Previously, property tax was collected based on the size of the property, which was 35.5 crore taka for the port.

In response to the higher property tax, the former mayor and various organizations launched protests to have it canceled. Under pressure from these protests, the Ministry of Local Government suspended the reassessment process on December 10, 2017. However, during the tenure of former mayor Mohammad Rezaul Karim Chowdhury, on January 18, 2022, the Ministry lifted the suspension.

A source from the port authority reported that for the fiscal year 2017-18, the property tax was determined to be 160 crore 16 lakh taka. The port raised objections and requested a reassessment. Subsequently, during the tenure of Mayor Rezaul Karim Chowdhury, the tax was set at 50 crore taka, a decision made in the presence of senior officials of both parties on July 14, 2021.

This is not the first time that a dispute over property tax has arisen between the Chittagong Port Authority and the City Corporation. A similar issue occurred 30 years ago. In the 1994-95 fiscal year, the City Corporation claimed a property tax of 39 crore 80 lakh taka, but the port only paid 5 crore taka. This disagreement escalated in the 2001-02 fiscal year, and the outstanding amount reached 197 crore 73 lakh taka. The City Corporation took a firm stance on recovering the debt, and the matter was eventually resolved through intervention by the Ministry of Local Government and the Ministry of Shipping. With mutual agreement, the port authority paid 112 crore 30 lakh taka in 2012.

The recent dispute has once again resurfaced in a letter sent to the Chairman of the Port Authority. The letter demands payment of the arrears. The letter, signed by the City Corporation's Chief Executive Officer Sheikh Muhammad Touhidul Islam, mentions that the property tax for the port authority's property for the fiscal year 2017-18 was set at 160 crore 16 lakh taka, which became effective from the 2020-21 fiscal year. Despite multiple requests for payment, the port authority has only paid 45 crore taka instead of the full amount of 160 crore taka.

In the letter to the port, the City Corporation highlights that nearly 90% of Bangladesh's international trade is conducted through the Chittagong seaport. Therefore, to keep the region's economic activities running smoothly, the City Corporation is working tirelessly to maintain the roads and highways. The City Corporation also emphasizes that it cannot fund the repairs alone and seeks cooperation from the Chittagong Port Authority for various developments.