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A staggering amount of over Tk 629 crore in Land Development Tax (LDT) remains unpaid by government ministries and their subordinate agencies, revealing a significant fiscal challenge for national revenue collection. The data from the Land Reform Board points to a systemic issue where essential public institutions, paradoxically, are failing to meet their basic tax obligations. The Ministry of Railways, particularly Bangladesh Railway, stands out as the largest defaulter, with arrears reaching Tk 202.25 crore. Officials from Bangladesh Railway attribute this massive debt to inadequate budget allocations from the Ministry of Finance, suggesting a disconnect between tax liabilities and available funds.

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We are making efforts to pay the outstanding land development tax. However, the allocation we receive from the Ministry of Finance is insufficient. For example, if we are required to pay Tk 100 crore in taxes, we receive only Tk 20–30 crore in allocation. That is why the backlog has accumulated.

This situation is not isolated to the railway sector. Other major defaulters include the Roads and Highways Department, the Water Development Board, city corporations, and the Civil Aviation Authority of Bangladesh. The reasons cited often revolve around budgetary constraints and complex internal procedures, which make timely tax payments difficult, if not impossible. While the Land Reform Board is actively pursuing recovery through workshops and planned notices, the inherent difficulties in collecting taxes from government entities, unlike individuals, are acknowledged. This highlights a critical need for better inter-ministerial coordination and financial planning to ensure that tax obligations are met.

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Bangladesh Railway is a service-oriented institution. Yet we have to pay land development tax as if we were a commercial entity. I would request the government to reconsider and reassess the land development tax, taking this issue into account.

From Bangladesh's perspective, this non-payment of LDT by government bodies is more than just an accounting issue; it represents a missed opportunity to bolster domestic revenue, which is crucial for national development. While the overall arrears have reportedly decreased compared to previous years, the persistent backlog underscores the need for more robust mechanisms to enforce compliance. The argument that institutions like Bangladesh Railway, which are service-oriented rather than commercial, should be reassessed for their tax burden is valid, but it must be balanced against the fundamental principle that all entities benefiting from land use should contribute to its development and maintenance. Addressing these accumulated dues is essential for fiscal discipline and for ensuring that public funds are utilized effectively.

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Collecting land development tax from individuals is easier than from government institutions. Institutions face budgetary and procedural complexities.