ABSTRACT
This chapter provides information on the administration of the land development tax (LDT), its effects on resource use and die distribution of income, and its revenue performance. The Bangladesh LDT requires knowledge of an individual's or a family's total holdings of land. The tax on agricultural land is based on the total agricultural land held by a family or individual for more than six months, whether or not these holdings are located in different local jurisdictions throughout Bangladesh. The chapter considers the LDT's effects on the use of resources, then its equity effects, and last its revenue performance. The LDT has positive effects on the efficiency of resource use and cm the distribution of income in Bangladesh, but these effects are minimal, given the low levels of tax rates and collections. Increased LDT revenues would strengthen efficiency of resource use and would mobilize more resources for public sector use.
