Bangladesh's proposed budget for fiscal year 2026-27 has reinstated the opportunity to legalise undisclosed money through real estate investment, reversing a pause maintained during the interim government's tenure.

Finance Minister Amir Khosru Mahmud Chowdhury, presenting the country's largest-ever budget of Tk 9,38,000 crore on Thursday, introduced a new mechanism under which individuals can whiten black money by purchasing plots and declaring previously hidden property values in their tax returns.

Under the new provision added to the income tax law, a buyer who concealed the actual value of land, building or apartment in registration documents will be allowed to disclose the difference between the actual price and the registered value in their tax return, paying a 30 percent tax on that gap.

Sellers who similarly concealed actual transaction values will face a 15 percent capital gains tax on the difference. If either party had already faced legal action before making a voluntary disclosure, an additional 20 percent penalty on the payable tax will apply.

Crucially, anyone availing this provision will be shielded from scrutiny under any other existing law regarding the source of the funds, provided no court has previously convicted them of criminal offences or that no case against them is already pending.

Real estate developers have welcomed the move. REHAB, the association of housing entrepreneurs, called it timely and constructive.

“We commend the government for providing this opportunity to legalise black money through plot purchases,” said REHAB President Ali Afzal, adding that the decision would help boost the housing industry.

The provision mirrors similar schemes offered in previous budgets, which critics have long argued reward tax evasion while undermining fiscal transparency.