Bangladesh, June 15 -- A controversial provision in the proposed national budget for fiscal year 2026-27 has reignited debate over the legalisation of undisclosed income, with economists warning that the measure could undermine tax compliance and good governance while the government insists it will stimulate investment in the housing sector and increase revenue collection.

The provision comes against the backdrop of rapid population growth and urbanization, which have significantly increased demand for housing across the country.

To address the growing need for investment in the real estate sector, the proposed budget includes a mechanism allowing individuals to declare previously undisclosed income used for purchasing land, buildings ...