Critical legal theorists argue that law historically favors those with power in society, helping them to maintain the status quo. In Bangladesh, land ownership, particularly in large quantities, bestows significant privilege due to the high population and limited land availability. The recently enacted Land Reforms Act 2023 for example preserves the privilege of inheritance as a tool for the rich to accumulate generational wealth. 

Section 4(4) of the newly enacted Land Reforms Act 2023 elaborates on the existing 60 bigha land ownership limit. It states that if anyone exceeds the limit, any excess would be seized and converted to khas land by the state without reimbursement. Yet, as per subsection 5, if the excess land is acquired through inheritance, the owner not only receives compensation but can choose which land to relinquish to meet the 60 bigha limit. The state didn’t even reserve the right to choose the land it acquires from inheritors (to match with its future development plans and policies). This Paired with the fact that inheritance is already a tax-exempted transfer of property that circumvents any capital gain tax, registration fee, or any other form of taxation under the law, creates a massive privilege. 

In contrast, a law-abiding individual with means may legally earn money with hard work, pay significant percentages as income tax, pay for registration and other fees for any property they buy, and indirectly cause the seller to pay capital gain tax. However, if they already own 60 bighas of land, it can be seized without compensation. The law overlooks their lawful engagement with the system and contributions to the government exchequer at each level of the transaction. On the other hand, a person inheriting some lands in excess of 60 bighas by being born lucky not only escapes any taxation while acquiring the land but also receives compensation for the land they relinquish to the state. Given all the above circumstances, it is rather perplexing why the law went out of its way to add an exception for inheritors in a provision that acquires land without compensation. Looking at the provision from this point of view exposes the privilege law entails to those who already own land through generational wealth.

To address this imbalance, the government should consider introducing an inheritance tax. Unlike other forms of wealth acquisition tied to contributions through labor or capital, inherited wealth is based solely on birth and luck and not based on hard work, skill, or any form of merit. Allowing such tax-free transfer and accumulation of wealth is grossly unfair to those paying tax on their income, sale, and registration of property. Inheritance tax is already prevalent in over 27 countries, with rates varying based on socioeconomic and cultural considerations. Introducing this tax in Bangladesh would offer a potential source of public revenue and help alleviate the disproportionate tax burden on the general public, ensuring a more equitable distribution of wealth.