The proposed budget for the 2025-26 fiscal year, presented by Finance Adviser Dr Salehuddin Ahmed on Monday, June 2, 2025, retains the controversial provision allowing individuals to whiten black money by investing in apartments, flats, or building construction.

However, the tax rates for this process have been increased, and the National Board of Revenue (NBR) will consider the source of funds legitimized upon payment of specified taxes based on property location and size.

Salehuddin Ahmed delivered the budget speech on Bangladesh Television, as the Jatiya Sangsad is currently non-functional.

The budget, totalling Tk 7,90,000 crore, reinstates the opportunity to legalise undisclosed income through real estate investments, despite the interim government’s initial decision on September 2, 2024, to abolish this practice.

Tax rates for legalising undisclosed income

The budget outlines area-specific tax rates for buildings and apartments, applicable per square foot of plinth area:

Dhaka (Premium Areas: Gulshan, Banani, Baridhara, Motijheel, Dilkusha):

Plinth area > 2,000 sq ft: Tk 2,000/sq ft

Plinth area ≤ 2,000 sq ft.: Tk 1,800/sq ft

Dhaka (Other Areas: Dhanmondi, DOHS, Mohakhali, Lalmatia, Uttara, Bashundhara, Dhaka Cantonment, Siddheshwari, Karwan Bazar, Banasree, Bijoynagar, Wari, Segunbagicha, Nikunja) and Chattogram (Panchlaish, Khulshi, Agrabad, Nasirabad):

Plinth area > 2,000 sq ft: Tk 1,800 /sq ft

Plinth area ≤ 2,000 sq ft: Tk 1,500/sq ft

City Corporation Areas (outside above regions):

Plinth area > 1,500 sq ft: Tk 700 /sq ft

Plinth area ≤ 1,500 sq ft: Tk 600 /sq ft

Municipal areas of district headquarters:

Plinth area > 1,500 sq ft: Tk 300/sq ft

Plinth area ≤ 1,500 sq ft: Tk 250/sq ft

Other Areas (outside City Corporations):

Plinth area > Tk 1,500 sq ft: Tk 100 /sq ft

All sizes: Tk 150 /sq ft (general rate).

Building Construction: A tax range of Tk 50 to Tk 900 /sq ft depending on the area, to avail the same benefit.

Conditions for legalising undisclosed income

Two conditions apply:

Funds from criminal activities under existing laws are ineligible for legalization.

Funds must not originate from illegitimate sources.

Criticism and concerns

Dr Iftekharuzzaman, Executive Director of Transparency International Bangladesh (TIB), criticized the provision, stating: “It undermines the interim government’s anti-corruption reform objectives.

The policy surrenders to the real estate lobby, encouraging corruption.”

It violates Article 20(2) of the Bangladesh Constitution, which mandates the state to make unearned income illegal, he said.

The provision discriminates against honest earners, giving owners of illegal money an unfair advantage in the housing sector, potentially monopolising real estate opportunities.

The decision to continue allowing black money to be whitened through real estate, despite higher tax rates, has sparked debate about its impact on economic fairness and anti-corruption efforts. While it may generate revenue, critics argue it compromises the government’s commitment to transparency and equitable economic policies.

This article has been revised for clarity, conciseness, and structural coherence, correcting repetitive text and ensuring accurate representation of tax rates and criticisms.