In the proposed budget for FY 2025–26, the opportunity to legalize undisclosed income—commonly known as ‘black money’—through flat or building purchases has been reinstated, with increased tax rates.
This provision allows individuals to invest in real estate by paying a fixed amount of tax per square foot based on property location and size, without disclosing the source of funds.
For example, in upscale areas like Gulshan, Banani, Baridhara, Motijheel, and Dilkusha, the tax has been set at Tk 2,000 per square foot for properties over 2,000 square feet, and Tk 1,800 for smaller units.
In other prominent areas of Dhaka and Chattogram, the rate ranges from Tk 1,500 to Tk 1,800. In less prominent city corporation areas and districts, the rate drops as low as Tk 100 per square foot.
Similarly, building construction will incur taxes ranging from Tk 50 to Tk 900 per square foot, depending on location.
However, the provision excludes money obtained from criminal activities or illegal sources, as per other prevailing laws.
Although such opportunities have historically been allowed under most governments, they have faced heavy criticism from economists for being unjust to honest taxpayers. Despite repeated offers, public response has remained minimal—with only Tk 47,000 crore in undisclosed income declared since inception.
Notably, the last caretaker government had revoked this provision, but it has now been reintroduced with revisions by the current interim administration.
