The proposed FY2025-26 budget has maintained the controversial provision allowing legalisation of undisclosed income through real estate investments, though with significantly increased tax rates compared to previous years.
Finance Adviser Salehuddin Ahmed announced Monday that individuals can still whiten black money by purchasing apartments or constructing buildings, subject to new location-based tax slabs. The highest rate of Tk2,000 per square foot applies to properties exceeding 2,000 sq ft in Dhaka’s premium zones including Gulshan, Banani, Baridhara, Motijheel, and Dilkusha.
Mid-range areas like Dhanmondi, DOHS, Uttara, and select Chattogram neighborhoods will see rates between Tk600-1,800 per sq ft, depending on property size. New constructions carry taxes from Tk50-900 per sq ft based on location.
Two key conditions apply: the funds must not originate from criminal activities per existing laws, and must represent legitimate albeit undeclared income. This marks a continuation of the policy after the interim government had earlier scrapped the more lenient whitening scheme introduced by the previous administration, which faced criticism for rewarding tax evaders.
Historical data shows tepid response to such amnesty schemes, with critics maintaining they penalise honest taxpayers while encouraging illicit financial practices. The substantially higher rates in the current proposal appear aimed at addressing these equity concerns while keeping the channel technically available.