The interim government is in a dilemma about whether to keep the proposed undisclosed money legalisation facility or not in the national budget for the 2025-26 financial year, finance ministry officials said.
Despite widespread criticisms from various corners over keeping the facility, the government cannot make any decision on dropping the facility amid pressures from stakeholders especially the realtors.
On Sunday, a nine-member team led by Real Estate and Housing Association of Bangladesh鈥檚 acting president Liakat Ali Bhuiyan met with finance adviser Salehuddin Ahmed at the secretariat in the capital Dhaka and urged the adviser to keep the provision.
The undisclosed money legalisation opportunity has been given for the investment in the real estate sector, particularly for the purchase or construction of flats with paying a certain rate of tax for FY26 beginning on July 1.
The FY26 budget is scheduled to be passed on June 22.
The successive governments have been providing the facility with easy tax rates.
The rate has been proposed to be increased five times by the interim government that assumed office in August 2024 after the fall of authoritarian Awami League regime amid a mass uprising.
One day after announcing the FY26 budget, finance adviser Salehuddin Ahmed in a press conference on June 3 said that they might drop the proposal amid widespread criticisms.
In a statement on June 2, the Transparency International Bangladesh called the proposed facility unethical and discriminatory.
The facility is completely contrary to the objectives of state reform, particularly the core purpose of the Anti-Corruption Commission reform, said the anti-graft watchdog.
Officials attending Sunday鈥檚 meeting said the finance adviser gave no assurance to the REHAB leaders over retaining the provision.
The finance adviser, however, assured them of considering their others demands regarding tax on flat purchase and value-added tax on housing companies.
Over Tk 45,000 crore undisclosed money has been legalised since 1972 with the National Board of Revenue getting Tk聽4,641 crore in taxes, said officials referring to the NBR estimate made in 2023.
In FY21, a record Tk 20,600 crore was legalised, with the NBR receiving Tk聽2,064 crore in taxes.
In FY2006-07, the then caretaker government offered scope for legalising undisclosed money with paying a penalty. That year, Tk聽9,682 crore was legalised.