Dhaka, June 07 (bdnews24.com) -- The government has moved to ban the use of black money for purchase or construction of buildings, lands and cars, in the budget for fiscal 2007-08.

The use of untaxed or undisclosed money was allowed under Sections 19B, 19BB and 19BBB of the Income Tax Ordinance, 1984 for the outgoing fiscal year that ends on June 30.

The government, however, in an order Monday, has allowed people to legalise untaxed money within the two months to July 31.

The government has been allowing undisclosed or untaxed money in purchase of apartments, lands and cars for several years although it stopped whitening black money at a rate of 7.5 percent from July 2006.

"The government's recent anti-graft drive has forced it to withdraw the facility for the purchase of apartments, lands and cars as well," a senior NBR official told bdnews24.com, asking not to be named.

Until June 30 of the current fiscal year, one can use black money to buy an apartment at a tax rate of Tk 300 per sq metre for an area up to 200 sq metres and Tk 500 for an area over 200 sq metres.

The rate is applicable to the areas in Gulshan, Banani, Baridhara, Bashundhara, Dhanmondi and DOHS in Dhaka and Panchlaish, Khulshi in Chittagong.

The rate is 7.5 percent for the purchase of land under Section 19BB of the ordinance.

For purchase of a car, the rates are 10 percent and 15 percent respectively on the basis of the engine power.

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