URP: 4251

Md. Samiul Islam SOJIB

Legal Aspects and Ethics of Planning
ID: 170445

 Income Sources of Municipality (Paurashava) in Bangladesh

The Local Govt. finance in Bangladesh has three aspects:
• Local Resources Mobilization (LRM)- Tax, Rates, Tolls, Fees
• National Govt. Grants (Through ADP and Special Allocation)
• Loans or Grants from Development Partners
According to The Local Government (Pauroshava) Act, 2009 there are 28 items of collecting
revenue of municipalities (Pauroshava). The major income sources of municipalities are shown
in Table 1.
Table 1: Major Income Sources of Municipalities.
Source Sub-components
Property tax on annual value of buildings and lands
Property and Holding Conservancy rate
1
Tax Water rate (except Dhaka and Chittagong)
Lighting rate
2 Shared Property Tax Surcharge on the transfer of property ownership
Tax on professions, trade and callings
Tax on vehicles and animals
3 Other Taxes
Tax on cinema, dramatic and entertainment
Tolls and minor taxes (on advertisement, marriage etc.)
Fees and fines
4 Non-Tax Source Rents and profits from property
Other sources
Internal, from banks, etc.
5 Loans
International agencies & Development Partners.
National Funds and Bangladesh Municipal Development Fund (BMDF), and
6
Projects Municipal Services Project (MSP)
Salary compensation grants
Octroi compensation grants
7 Government Grants
Normal development grants
Extra ordinary grants

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URP: 4251
Md. Samiul Islam SOJIB
Legal Aspects and Ethics of Planning
ID: 170445

 Income Sources of Narail Paurashava (Financial Year 2011-2012)

Table 2: Information of Narail Paurashava

Name Narail Paurashava
Upazila Narail Sadar
District Narail
Established 19992(Category-C) & 1999 (Category A)
Area 22 km2
Population 64,783 (BBS, 2011)

Income of Narail Paurashava

(FY 2011-2012)
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
Holding Tax (Private) Holding Tax (Govt.) Water Supply Other Sources

Actual Aquired Due

Figure 1: Income Graph of Narail Paurashava.

Table 3: Income Summary of Narail Paurashava

Source Amount (BDT)

Resource Mobilization 2,53,22,315
Govt Grant (Special Allocation) 52,50,000
Loans/Grant from Development Partner N/A

Narail Paurashava is a Category A type Paurashava as its annual income exceeds 10 Million
BDT excluding govt. grant or loans. Its main income sources mentioned in the budget of the
paurashava are Holding Taxes, Water Supply and others. It is seen that the government
holding taxes remained due most. So, the paurashava authority should pay attention to collect
the dues.

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