Black Money Amnesty in Budget ‘Corruption-Friendly’: TIB

Transparency International Bangladesh (TIB), a leading anti-corruption watchdog, has issued a strong condemnation of the interim government’s decision to retain the controversial provision allowing the whitening of black money in the proposed national budget for the fiscal year 2025–26. The organisation has labelled this move as unconstitutional, unethical, and a significant setback to ongoing efforts to combat corruption and promote financial transparency in the country.

Dr Iftekharuzzaman, Executive Director of TIB, expressed deep concern over the inclusion of this provision, highlighting that it directly violates Article 20(2) of the Constitution, which mandates equality before the law and forbids discrimination against any citizen. “By allowing individuals and entities to legalise illicitly acquired wealth, the government is effectively rewarding illegal activity and undermining the principles of fairness and justice. This will disproportionately harm honest taxpayers who comply with tax laws,” he explained.

The amnesty provision, according to Dr Iftekharuzzaman, encourages the continued accumulation and concealment of illegal wealth, as those involved feel assured that they will eventually be able to legitimise their earnings without penalty. “Such a policy not only entrenches economic inequality but also erodes the public’s trust in government institutions and the tax system. It sends a message that corruption can pay off, which is dangerous for a country striving for good governance,” he warned.

TIB also raised specific concerns about the budget’s apparent favouritism towards the real estate sector. This sector has long been plagued by corruption and opaque financial dealings, and the provision in the budget that benefits it has drawn sharp criticism. “Supporting a sector notorious for financial irregularities contradicts the government’s stated commitment to reform and transparency,” the organisation noted.

This policy stance stands in direct opposition to recommendations from the Anti-Corruption Commission Reform Commission, which had advocated for a permanent end to all forms of black money amnesty. The commission’s report underscored the need for stringent measures to prevent money laundering and tax evasion, rather than enabling these practices through periodic forgiveness schemes.

Beyond the amnesty itself, TIB criticised the budget speech for lacking concrete details on the mechanisms to recover laundered money or assets that have been illicitly transferred abroad. The government’s vague reference to taxing former citizens who have moved wealth overseas was seen as insufficient and lacking a clear enforcement plan.

Additionally, TIB expressed concern over the proposed structural reform to separate tax policy from tax administration. While the idea aims to improve efficiency, the absence of clear transparency and accountability frameworks raises fears that it could lead to greater loopholes and weaken oversight.

In light of these issues, Transparency International Bangladesh has called on the government to urgently reconsider and withdraw the black money amnesty provision from the budget. The organisation insists that comprehensive investigations must be launched to trace the origins of suspicious wealth and that strong measures should be adopted to strengthen the integrity of the tax system.

“Tackling corruption and ensuring equitable taxation is essential for sustainable development and social justice in Bangladesh. The government must restore public confidence by enforcing laws fairly and transparently, rather than allowing shortcuts that benefit the corrupt,” Dr Iftekharuzzaman concluded.

As Bangladesh faces growing challenges in mobilising domestic revenue and maintaining economic stability, the stance of the government on issues like black money amnesty will have far-reaching implications for governance, investor confidence, and social equity.