The government has increased the tax burden on investments of undisclosed or "black" money in the housing sector, raising the rate up to five times higher than before in the proposed FY 2025–26 budget.
Finance Adviser Dr Salehuddin Ahmed presented the proposed budget for the 2025-2026 fiscal year, amounting to Tk7,89,999 crore, in a televised speech on Monday.
The new move aims to discourage the use of illicit funds in the real estate market and align tax rates more closely with actual market values, according to officials from the National Board of Revenue (NBR).
Officials say the sharp hike in tax rates is meant to clamp down on money laundering through property investments and reflects a departure from previous lenient policies.
Notably, the revised framework would also empower relevant agencies to question the source of funds used for such investments.
Currently, buyers of apartments over 200 square meters in upscale areas like Gulshan, Banani, Baridhara, and Motijheel are taxed Tk6,000 per square meter, while smaller apartments incur Tk4,000 per square meter.
In other areas of Dhaka, such as Mirpur, Dhanmondi, Uttara, and Chittagoong’s Panchlaish and Khulshi, taxes are Tk3,000–3,500 per square meter, depending on apartment size.
Under the new proposal, these rates could increase fivefold.
That means buying a 200-square-meter apartment in Gulshan using undisclosed money could result in a tax bill jumping from Tk8 lakh to Tk40 lakh.
Taxes in less prominent regions, currently ranging from Tk500 to Tk1,500 per square meter, may triple.
