TIB strongly criticises continuation of legalising black money

Transparency International Bangladesh (TIB) has strongly condemned the decision to continue allowing the whitening of black money in the proposed budget.

In a statement immediately after the announcement of the budget for the fiscal year 2025-26 on Monday, the TIB stated that the government has taken a stance completely contrary to the core objectives of reforming the Anti-Corruption Commission (ACC).

The anti-graft watchdog has termed this stance as unethical, discriminatory, and unconstitutional.

Dr Iftekharuzzaman, Executive Director of TIB, made these remarks today, Monday, in a reaction to the proposed budget for 2025-26 fiscal years.

He said this decision clearly indicates that the government is defying the core objectives of state reforms, especially of anti-corruption reforms, by taking such a decision. He thinks the government has surrendered to the power of real estate lobby by encouraging corruption.

Iftekharuzzaman said that regardless of the tax rate, this move is a clear violation of Article 20(2) of the Constitution, which mandates that the state must ensure unearned income is treated as illegal.

He added that the opportunity to legalise black money is also discriminatory, as it enables owners of illegal funds to establish greater monopolistic control over the housing sector, thereby depriving honest earners of the opportunity to invest in flats or property.

The TIB Executive Director expressed concern that such a decision would encourage corruption.

He noted that by doing this, the government is essentially incentivising citizens to accumulate illegal and undisclosed assets throughout the year, with the assurance of legalising them at year’s end. He identified the real estate sector as the most corrupt sector in the country.

The press release demanded the immediate cancellation of this corruption-friendly provision that allows black money to be legalised.

TIB also called for an investigation into the sources of black money, ensuring accountability for those involved, and emphasised the need to establish equity and justice in the tax system.

Iftekharuzzaman also stated that TIB had expected the interim government would present some progress in the budget regarding the recovery of funds laundered abroad. However, the finance adviser addressed the issue with only a single sentence, failing to provide any substantial information.