Real estate association have urged the government to include a black money whitening scheme in the upcoming national budget for FY25 to encourage investment in the local housing sector and stem the outflow of funds abroad.

Jannatul Ferdous, administrator of the Real Estate and Housing Association of Bangladesh (REHAB), advocated for the reintroduction of a disclosure window for undeclared income, lasting five to ten years, without prompting questions about its source.

During a pre-budget meeting at the National Board of Revenue (NBR) on Sunday, she expressed worries about a potential increase in large-scale money transfers abroad.

For this, she cited lucrative incentives offered by other countries for second-home investments with no inquiries into the origin of the funds.

She argued that such a scheme, if implemented, would generate more revenue for the government by bringing money back into the domestic economy.

According to REHAB, the government collected Tk2,065 crore in revenue during FY21 from the undisclosed income investment program.

The realtors also requested a reduction in the current fees for apartment and plot registration, from 12% to 7%.

The revenue board on Sunday also held pre-budget consultations with the Institute of Chartered Accountants of Bangladesh (ICAB), the Institute of Cost and Management Accountants of Bangladesh (ICMAB) and representatives from the steel, cement and construction sectors.

ICMAB suggested imposing a source tax on payments made for social events, such as weddings, at the time of booking community centers.

They also recommend collecting source tax from individuals contesting elections in exclusive clubs.

ICAB members proposed strengthening the enforcement of transfer pricing regulations, reducing penalties for late tax submissions and amending the income tax law to allow a one-month extension for filing tax returns, adjusting business losses against other income and rationalizing source taxation.

They also advocated the gradual introduction of mandatory limits on cash transactions.

The association leaders proposed setting the minimum corporate tax not below 15%, in line with the global best practices signed by 136 countries.

Citing clinker as a key raw material, cement manufacturers during the pre-budget meeting requested the revenue board a reduction in customs duty on clinker imports from Tk700 per tonne to Tk200.

They also urge the removal of the "illogical minimum tax provision" on imports of clinker, granulated slag, limestone, fly ash and gypsum.

The Bangladesh Association of Construction Industry demanded an updated price schedule reflecting current market prices, the abolition of source tax, a reduction in advance income tax (AIT) and VAT to 5 per cent, and the removal of VAT on small and medium enterprises (SMEs).

They claim that a 15%-25% increase in local construction material prices has caused financial losses for many companies.

At the meeting, businesses also alleged harassment by VAT officials demanding higher payments compared to the previous year.