Budget Reopens Black Money Window with "No-Questions" Clause

The BNP government has brought back the provision to legalise undisclosed income in its proposed budget for the upcoming fiscal year. According to a bdnews24.com report, a clause strictly barring anyone from questioning the source of such funds has also been included in the proposal, mirroring the legal mechanisms utilized by previous political administrations.

The cabinet approved the Finance Bill for 2026–27 containing this provision on Thursday, and Finance Minister Amir Khosru Mahmud Chowdhury subsequently presented the national budget in parliament at 3:00 PM. The national budget is due to be formally passed on June 30 and will take effect from July 1.

If the provision remains unchanged, the legal window will remain wide open from July through the following June for any individual buying or selling land, buildings, or apartments. Notably, the provision was completely omitted from the finance minister's budget speech in parliament, meaning it was incorporated into the bill without any floor discussion.

A Continuation of Previous Policy Frameworks

The revival of this tax amnesty follows a series of similar legislative attempts by preceding administrations. The previous interim government of Muhammad Yunus had initially included a similar provision in its proposed 2025–26 budget but ultimately dropped it following intense public criticism. Prior to that, the Awami League government—which was ousted in the 2024 July Uprising—had maintained the exact same scheme, complete with a matching no-questions clause regarding the source of funds.

The newly formed BNP government, which came to power following the election in February, has now revived the mechanism by explicitly amending the first schedule of the Income Tax Act 2023 within the newly placed Finance Bill. The provision explicitly states that notwithstanding anything contained in this law or any other law currently in force across Bangladesh, no question shall be raised and no legal proceedings taken regarding the source of any investment, purchase, or receipt "voluntarily" disclosed, nor about the specific tax paid against it.

The newly introduced scheme lays down separate tax procedures for real estate buyers and sellers based on differences between actual transaction values and deed values.

For buyers, if the actual purchase price of land, a building, or an apartment exceeds the officially registered deed value, the taxpayer will be required to pay income tax on the undisclosed excess amount at the regular rate applicable to individual taxpayers. This means the excess will be taxed under standard slab rates alongside the usual tax-free threshold.

A corresponding framework covers real estate sellers. If the actual sale price of a property exceeds its registered deed value, the seller will pay income tax on the undisclosed excess at the standard rate applicable to capital gains—which is set at 15 percent on the difference between the original purchase price and the final sale price.

The Finance Bill outlines clear conditions and limitations for individuals wishing to avail themselves of the amnesty scheme. If an official audit or legal proceedings under the income tax law have already been initiated against an individual prior to their voluntary disclosure, they can still use the scheme but must pay an additional 20 percent penalty on top of the tax that would otherwise be due.

To legalise undisclosed funds, the taxpayer must formally declare the relevant amount under the "tax deducted or collected at source" section within the lifestyle expenditure portion of their tax return. This declaration serves as a direct signal to tax officials, after which no further legal obligations or questions regarding the source of funds will follow. However, this facility is entirely unavailable to anyone against whom an active court case is already underway or who has been convicted of an offence before making their voluntary declaration.