The proposed 15% tax to whiten black money in the budget for the 2024-2025 fiscal year aims to prevent money laundering, Awami League General Secretary Obaidul Quader has said.
"The trafficked money often goes unnoticed by everyone. This measure is being implemented to protect the country from such trafficking. Consequently, we believe the money will return to the mainstream banking system,” Quader said.
Quader, also the road transport and bridges minister, made the comments at a press conference held at the Awami League central office on Bangabandhu Avenue on Saturday.
"We are taking steps to integrate undisclosed income into the mainstream economy by imposing a 15% tax. This will enhance the flow of money into the banking system,” he added.
Asked about the Centre for Policy Dialogue's (CPD) comment that allowing black money to be whitened is contradictory to Awami League's election manifesto, Quader said: "We are taking measures to bring undisclosed money into the banking system. Tax benefits will actually increase within the banks.
“As for what CPD, TIB, or SUJAN have to say—we are not concerned. They all speak in alignment with the BNP, making statements that do not reflect the reality of their actions.”
When asked about taking action against Awami League leaders accused of corruption, Quader said: "Provide a list of those you believe are corrupt. We will request the ACC to investigate them."
The proposed budget for FY25 contradicts the Awami League’s election manifesto by providing an opportunity to whiten black or undisclosed money, the Centre for Policy Dialogue (CPD) said on Friday.
In its post-budget analysis, the CPD said that allowing the whitening of black money for a 15% tax, irrespective of the country’s current legislation, is not only unethical but also promotes corruption.
The CPD believes that the proposed FY25 budget fails to provide concrete measures to address ongoing economic concerns, particularly in curbing inflation and providing relief to the poor and those with fixed incomes.
The independent think-tank described this budget as “ordinary” given the extraordinary challenges faced, and criticized the new government for presenting a repetitive budget despite having a new finance minister and state minister.
However, the CPD praised the reduction in project allocations in the Annual Development Programs (ADPs) as health and education were included among the top five sectors receiving the largest budget allocations.