TIB slams black money legalisation provision in proposed budget

Transparency International Bangladesh (TIB) has criticised the government’s decision to continue allowing the legalisation of black money in the proposed FY2025–26 budget.

In a statement on Monday, the anti-graft watchdog said the move contradicts anti-corruption goals and breaches constitutional principles.

TIB Executive Director Dr Iftekharuzzaman denounced the decision as “unethical, discriminatory, and unconstitutional,” alleging the government had yielded to pressure from the real estate lobby.

He referred to Article 20(2) of the Constitution, which deems unearned income illegal, and argued that the measure unfairly benefits those with illicit wealth while undermining honest taxpayers.

TIB warned that the continued opportunity to regularise undisclosed income may encourage individuals to accumulate black money throughout the year and legalise it later.

The Berlin-based Transparency International’s Bangladesh chapter called for the immediate repeal of the measure and urged authorities to trace the origins of such funds and ensure accountability.

Dr Iftekharuzzaman said that they had expected the government to provide an update in the proposed budget on efforts to recover laundered money from abroad.

However, the finance adviser only mentioned the issue in a single sentence, seemingly to avoid it, he said.

While there is a provision to tax and penalise those who laundered money and later gave up Bangladeshi citizenship, it is still unclear how this would be implemented, the TIB executive director.

He also noted the absence of proposals to separate policy from revenue management and ensure transparency and accountability in the sector, calling it disappointing.