Interim Government Continues Opportunity to Legalize Black Money through Apartment-Flat Purchases with New Conditions

02 June, 2025 : The interim government has announced the continuation of the opportunity to legalize undeclared income, commonly referred to as black money, through the purchase of apartments, flats, buildings, floor spaces, and land in the 2025-26 fiscal year budget. However, this facility will not apply across all sectors indiscriminately. The proposed tax rates for this scheme may increase up to sevenfold.

On June 2, 2025, the Finance Adviser proposed this continuation during the budget announcement. According to the new rules, in Dhaka’s Gulshan, Banani, Baridhara, Motijheel, and Dilkhusha areas, buildings or apartments with a plinth area exceeding 2,000 square feet will be taxed at Tk 2,000 per square foot, while those with 2,000 square feet or less will be taxed at Tk 1,800 per square foot.

In other areas such as Dhanmondi, DOHS, Mohakhali, Lalmatia, Uttara, Bashundhara, Dhaka Cantonment, Siddheshwari, Karwan Bazar, Banashree, Bijoynagar, Wari, Segunbagicha, and Nikunja in Dhaka, as well as Panchlaish, Khulshi, Agrabad, and Nasirabad in Chattogram, buildings or apartments exceeding 2,000 square feet will be taxed at Tk 1,800 per square foot, and those with 2,000 square feet or less will be taxed at Tk 1,500 per square foot.

In other city corporation areas, buildings or apartments exceeding 1,500 square feet will be taxed at Tk 700 per square foot, while those with 1,500 square feet or less will be taxed at Tk 600 per square foot. In municipal areas of district headquarters, buildings exceeding 1,500 square feet will be taxed at Tk 300 per square foot, and those with 1,500 square feet or less will be taxed at Tk 250 per square foot. In other areas of the country, buildings exceeding 1,500 square feet will be taxed at Tk 150 per square foot, and those with 1,500 square feet or less will be taxed at Tk 100 per square foot.

For building construction, a similar facility has been proposed with tax rates ranging from Tk 50 to Tk 900 per square foot, depending on the area.

Two conditions have been imposed for legalizing undeclared income. Firstly, the money must not originate from any criminal activities under any existing law, and secondly, it must not come from any illegitimate source. If these conditions are not met, black money cannot be legalized under this provision.

AI/MR