The interim government has retained the provision allowing the investment of undisclosed wealth—commonly referred to as black money—in the real estate sector, but with significantly increased tax rates.
Finance Adviser Salehuddin Ahmed has maintained the scope for money whitening through the purchase of apartments or flats.
In his budget speech, the finance adviser stated that this opportunity has been extended to support building construction. However, the applicable tax has been raised compared to previous years.
The new rate is likely to see a five-fold rise from current levels.
The same method will continue, but with higher rates—ranging from 3% to 5%, depending on the location.
The scope for whitening undisclosed money will also be limited to specific areas such as buildings, houses, flats, floor space, and land.
Currently, for apartments over 200 square metres in Gulshan, Banani, Baridhara and Motijheel commercial areas, a fixed tax of Tk6,000 per square metre is levied regardless of the property’s value. For apartments under 200 square metres, the tax is Tk4,000 per square metre.
In other areas such as Mirpur, Mohammadpur, Dhanmondi, Mohakhali, Lalmatia Housing Society, Uttara Model Town, Bashundhara Residential Area, Siddheswari, Karwan Bazar, Banasree, Bijoynagar, Wari, Segunbagicha, Nikunja, and Chattogram’s Panchlaish, Khulshi, Agrabad and Nasirabad areas, the current tax on undeclared funds is Tk3,000 per square metre for apartments under 200 square metres and Tk3,500 for those over 200 square metres. 
For other areas, the current tax per square metre ranges from Tk500 to Tk1,500, where a threefold increase is anticipated.
To illustrate, consider someone investing black money to purchase a 200-square-metre apartment in Dhaka’s Gulshan area. Under the current system, the tax would be Tk8 lakh. If the proposed five-fold increase is implemented, the tax liability would jump to Tk40 lakh.