Funding Sources of DNCC
The sources of funding for DNCC is comprise internal revenue collection, central government grants, development grants, project development loans and other loans.
Internal Revenue Collection:
The Power to levy and collect revenues is contained in the Dhaka City Corporation Ordinance (1983). The revenues are in the form of taxes, rates and fees whose amounts are established in their respective Model Tax Schedules.
Taxes and Rates (collectively known as the Holding Tax)
This levy applicable to all properties (domestic, commercial, industrial, and institutional). Is a major source of municipal revenue and is composed of:
Land and Buildings Assessment (property tax with a ceiling of 7% on the balance of the annual rental value)
Lighting Rate (street lighting, rate set a maximum of 3%)
Conservancy Rate (a rate for provision of solid waste collection and disposal services, also with a ceiling of 7%)
Service Elements of Holding Tax:
These are charged for all properties in areas where each service is provided, irrespective of whether or not the individual properly owner avails himself of the service, including:
The Fixed Property Transfer Tax (levied by central government, 2% of the declared properly value is remitted to the city corporation).
The Octroi Compensation Grant (grant from central government to compensate municipalities for the abolition in 1985 of their powers to levy import and export taxes transmitting their territories).
The Trades and Profession License Tax (an annual fixed amount paid by tradesmen and professionals as a license fee to conduct their business activities).
An Entertainment Tax (10-15% of the entrance ticket value for cinemas, theaters, exhibitions, etc).
Rickshaw License (an annual fee)
Income from Residential, Market and Other Properties (from advance payments and annual rentals paid by lessees for properly developed by the municipalities 22).
Road Excavation Fees (charged for utilities which lay pipes and cables under roads.
Other (generating minimal revenues).
These are equity contributions from central government towards capital project implementation costs. Typically, these are made for the funding of no cost or indirect cost recovery programs such as roads, flood protection and drainage, whether from internally generated central government revenues or from external loan/grant proceeds.
Project Development Loans:
For cost-recovery projects, such as land development, sanitation and solid waste management, the central government extends external loan proceeds under subsidiary loan agreements.
Dhaka City Corporation has access to domestic loan- term loans from government- owned banks.
প্রধান নির্বাহী কর্মকর্তা
The Chief Executive Officer (CEO) of the City Corporation is appointed by the Government. He is the executive Head of the Organization as well as the controlling authority of all departmental activities. In exercising his power and discharging duties he/she will be responsible to the Mayor/Administrator.