No provision to legalise black money in budget: NBR

The National Board of Revenue (NBR) has denied that the proposed 2026-27 budget includes any provision to legalise undisclosed income, describing criticism over the issue as a "misunderstanding." NBR Chairman Md Abdur Rahman Khan said the measure is intended to address long-standing tax complications related to property transactions rather than provide a blanket opportunity to whiten black money.

Speaking at a post-budget press conference in Dhaka on Friday, Khan said the controversial provision in the Finance Bill aims to encourage taxpayers to declare the actual value of land, buildings and apartments, where significant discrepancies often exist between market prices and registered values.

He explained that many properties are registered at values substantially lower than their actual market prices, creating difficulties for both buyers and sellers in explaining the source of funds during tax assessments. The new provision would allow taxpayers to voluntarily disclose the difference between the declared and actual transaction values and pay applicable taxes accordingly.

The NBR chief stressed that this should not be interpreted as a black money whitening scheme. He added that if there is strong public or expert opposition to the provision, the government remains open to reviewing it.

Under the proposed measure, taxpayers who voluntarily disclose previously undeclared amounts linked to property transactions would be required to pay regular income tax on those sums. However, individuals identified through audits or enforcement actions before making such declarations would face an additional 20 percent penalty.

Finance Minister Amir Khasru Mahmud Chowdhury acknowledged the long-standing gap between government-assessed mouza rates and actual market values. He said a committee has been formed to review mouza rates nationwide to better align them with prevailing market prices.

The minister noted that once mouza rates accurately reflect market values, the need for such provisions would diminish. He said the government's broader objective is to improve transparency in property taxation rather than offer a general avenue for legalising undisclosed wealth.

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The clarification came after economists and policy analysts raised concerns that the budget proposal could effectively create a new pathway for legitimising unreported income through property investments.