The interim government's initiative to scrap the provision for whitening black money remained incomplete as such provision is still applicable in case of purchasing apartment and land.
The provision has been offering a blanket facility for years to whiten money through investing in apartments and lands.
No authorities can raise a question on the source of the declared money.
Senior Research Fellow of the Centre for Policy Dialogue (CPD) Towfiqul Islam Khan said the provision for apartments allows black money holders to enjoy a nominal tax rate, up to 2.65 per cent only, as per market value.
He said investment in land would also enjoy the similar rates which could not be assessed due to non-availability of market value of land.
A senior tax official, however, admitted that the effective tax rate is lower if one considers the market value.
According to Mr Khan's analysis, the black money holders would be able to whiten their money by investing in apartments with a nominal tax ranging from 1.92 per cent to 2.65 per cent.
Recently, the National Board of Revenue (NBR) scrapped the blanket facility of declaring undisclosed income paying 15 per cent tax. This is for the first time the NBR withdrew such a budgetary scheme on whitening money within two months after its approval by the parliament.
According to the budget speech, "no authority can raise any question if taxpayers pay fixed rates for immovable properties like flats, apartments and land, and 15 per cent tax on other sectors including cash, irrespective of the existing laws of the country."
These provisions discourage honest taxpayers, and the indemnity undermines the law and the spirit of economic and social justice, said Mr Khan, author of a paper containing analysis on the FY 2024-25 budget.
"The interim government has revoked one of the provisions of legalising black money. It is time to suspend all such provisions," he said.
Over the years, opportunities have been given to legalise black money or undisclosed income with discounted tax rates in multifaceted ways, said Mr Khan.
Legalising black money by investing in the real estate sector is one of the most disappointing ways, he added.
This provision has been kept in subsequent budgets. "Our analysis suggests that the applied tax rate through the current provision could be as low as 2-3 per cent, whereas an honest taxpayer is giving income tax at 25 per cent rate," he said.
This is surely not justified from an economic and moral point of view, he added.
The real estate sector in Bangladesh has also been hostage to black money, he added.
The sector is flooded with ill-gotten wealth which pushes real estate prices well above the purchasing power of the honest middle-income group as well, Mr Khan added.
Syed Shamim Reza, Managing Director of Imperial Group, said that no such facility is paying off to increase sales of apartments as most of the people are struggling with inflationary pressure.
A senior income tax member said taxpayers cannot show actual prices as the government's registration value is much lower than that of actual market prices.
Rather than offering such a facility, the government can plug the loopholes that compel the apartment- and land-owners to hold black money, he added.
Responding to queries on accepting such money without question, he said that the taxpayers declare some hypothetical sources of money as they cannot show it in normal process.
Mr Khan of CPD, however, said anyone can register at the market value, if wishes to do so, as the registration value of the government is set as floor price.
Former income tax member Aminur Rahman said the tax rate for these two particular facilities to whiten money is high and not an injustice to the honest taxpayers.
"It's not the taxman's job to punish the black money holders as they are mandated only to collect taxes," he added.
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