Transparency International Bangladesh (TIB) has expressed “deep dismay and strong resentment” over media reports suggesting that the government is considering introducing a provision in the upcoming FY2026–27 budget to legalize black money through an “unconditional amnesty” that would bar any inquiry by authorities.
TIB said such a move, reportedly justified as a measure to revitalize the housing sector, boost industrial investment, and accelerate economic growth, would instead amount to normalizing corruption under state backing. It called for the provision to be permanently abolished.
In a statement issued Thursday, TIB Executive Director Iftekharuzzaman said successive governments have, since independence, retained mechanisms for legalizing undisclosed income in violation of Article 20(2) of the Constitution.
“Since independence, nearly every government, through one mechanism or another, has perpetuated this provision for legalizing ‘undisclosed income’ in direct breach of Article 20(2) of the Constitution,” he said.
He added that the practice was “institutionalized in an overtly corruption-inducing manner” during what he described as a previous authoritarian regime, at times allowing disclosure “without question” or at concessional tax rates below standard levels.
According to him, while short-term revenue gains have often been cited as justification, the long-term effect has been the entrenchment of tax evasion and discouragement of compliant taxpayers.
He further said the interim government formed after the July uprising had previously abolished the provision in stages, and that any attempt to reinstate it would represent “two steps backward for every one step forward.”
“Extending the facility to legalize black money is equivalent to granting state-sponsored institutional legitimacy to corruption,” he said, adding that it places the current government in a “deeply controversial position” and contradicts its stated anti-corruption commitments.
Referring to Clause 67 of the National July Charter 2025, he said all political parties, including BNP, had pledged full implementation of constitutional obligations to eliminate opportunities for unearned income.
He also noted that BNP’s electoral manifesto includes a pledge to take a strict stance against corruption, including through reforms of the Anti-Corruption Commission (ACC). However, he said media reports suggest the proposed budget provision—reportedly influenced by housing sector interests—could include “complete immunity” from scrutiny by the Anti-Corruption Commission (ACC), the National Board of Revenue (NBR), or other authorities.
He added that Recommendation 3 of the ACC Reform Commission calls for the permanent abolition of the black money legalization facility, a position he said has been agreed upon by political parties.
TIB also argued that previous attempts to legalize undisclosed income had not resulted in significant increases in tax revenue, but instead reinforced perceptions that wrongdoing would go unpunished.
On the reported plan to repatriate laundered funds through a general amnesty, TIB said such a measure could only be considered if it targeted legitimate asset repatriation by citizens abroad.
However, it stressed that individuals involved in money laundering should not be allowed to benefit from such a facility, and that those already facing legal proceedings must be held accountable without exception.
“If the government is pursuing this plan as part of a genuine effort to bring back assets belonging to Bangladeshi citizens from abroad, that may be considered,” he said. “However, it must be ensured that those involved in laundering illegally obtained funds are not permitted to avail themselves of this facility.”
He added that earlier similar approaches under previous regimes failed to produce meaningful results and were ultimately discontinued.
“It demonstrates that this type of provision is nothing more than a failed effort,” he said, urging the government to uphold its stated anti-corruption position and avoid introducing what he described as an “unconstitutional, discriminatory, and corruption-facilitating” provision for legalizing black money.