Bonik Barta illustration Transparency International Bangladesh (TIB) has expressed
shock and disappointment over the unethical provision in the newly announced
budget that allows laundering black money disguised as undisclosed income.
TIB fears that the facility to legalize black money with
just a 15 percent tax will discourage honest and legitimate taxpayers, as no
authority will question the money and assets declared under this provision,
said a press release issued by the anti-graft movement on Thursday evening
following the placement of budget for 2024025 fiscal year at the Parliament in
the afternoon.
This will foster a liberal environment conducive to
corruption in the country. Furthermore, this opportunity undermines the ruling
party's election manifesto and its frequently reiterated pledge of zero
tolerance against corruption. In light of these concerns, TIB is strongly
demanding that the government withdraw this provision allowing the laundering
of black money.
TIB Executive Director Dr Iftekharuzzaman expressed
frustration over the logic behind keeping the provision to whiten black
money. He also expressed profound
disappointment at how the Data Verification System (DVS) has resulted in legal
complexities regarding the declaration of undisclosed money, leading to the
legitimization of property purchases using such funds, primarily due to
taxpayers' lack of awareness. Even more troubling is that no authority will have
the opportunity to question these transactions.
He also said “Justifying such unethical, illegal,
discriminatory and unconstitutional provision which renders the ruling party’s
talk against corruption meaningless is also deepening and widening the erosion
of moral and ethical backbone of the society. Furthermore, it is a clear
government invitation to the people to be involved in all forms of corruption
and illegitimate enrichment with the guarantee that such black money will be
given clean certificates. In other words, government is, in reality, advising
people to be corrupt with a guarantee of impunity.”
Dr Zaman termed the provision of a maximum 30 percent tax on
honest taxpayers as discriminatory and unconstitutional. He said, “For a number
of reasons this provision is unjustifiable. It is distinctly contradictory to
the Constitution, especially article 20(2) which criminalizes illegitimate
income. It further violates the constitution as it is discriminatory against
honest income earners who are subjected to upto 30 percent tax whereas the
black money holders are being practically rewarded for corruption by offering
the bait of only 15 percent.”
“Compromising morals in an attempt to collect expected
revenue will never succeed in the short or long term. A prime example is that
two years ago, a 10 percent tax was allowed to legalize undisclosed money, but
there was no significant response. Similarly, no one took advantage of the
opportunity to repatriate smuggled money. Therefore, it is reasonable to question
whose interests are being served by including such provisions in the budget.”
he said.
Calling upon the government to end the long-standing and
unconstitutional practice of providing opportunities to whiten black money, Dr.
Zaman hoped that “The government will ultimately act with good sense,
foresight, loyalty to the Constitution, and adherence to the rule of law by
withdrawing this provision. Simultaneously, we call for effective
accountability measures to trace the sources of wealth of black money owners,
thereby reducing rampant corruption.”
