Transparency International Bangladesh (TIB) on Thursday strongly criticised reported government plans to reintroduce a provision allowing the legalisation of undisclosed money in the proposed national budget for fiscal year 2026-27, calling the move unconstitutional, discriminatory and supportive of corruption.
The anti-corruption watchdog warned that granting an “unconditional amnesty” to holders of black money, with immunity from scrutiny by authorities, would effectively provide state-backed protection to corruption and weaken the government’s anti-graft commitments.
In a statement issued on Thursday, TIB Executive Director Dr Iftekharuzzaman said successive governments since independence had continued the practice of allowing the whitening of undisclosed income in violation of Article 20(2) of the Constitution.
He alleged that the practice became more deeply institutionalised during the previous government through facilities that allowed black money to be legalised either “without question” or at concessional tax rates lower than those paid by honest taxpayers.
“Although short-term revenue gains are often cited as justification, the long-term impact has been the expansion of tax evasion culture and the discouragement of compliant taxpayers,” he said.
According to media reports, the government is considering allowing investment of undisclosed money in sectors such as housing and industry to stimulate economic activity and revive the sluggish real estate market.
However, TIB argued that such measures would normalise corruption rather than support sustainable economic growth.
“The move amounts to granting institutional legitimacy to corruption under state patronage,” Dr Iftekharuzzaman said, questioning the message such a policy would send at a time when the government has pledged to pursue a strict anti-corruption stance.
He said the reinstatement of the provision would undermine earlier steps taken after the July political changeover, when the facility to legalise black money had reportedly been phased out.
Referring to Clause 67 of the National July Charter 2025, Dr Iftekharuzzaman noted that political parties, including BNP, had pledged to eliminate opportunities for enjoying unearned income and committed themselves to anti-corruption reforms.
He also cited recommendations of the Anti-Corruption Commission Reform Commission, which called for the permanent abolition of black money whitening facilities.
TIB further warned that repeated opportunities to legalise undisclosed income in the past had failed to generate significant revenue, while creating public perceptions that corruption and tax evasion were being tolerated by the state.
On reports that the government may consider a “general amnesty” to encourage repatriation of laundered assets held abroad, TIB said such a move could only be considered under strict conditions.
Dr Iftekharuzzaman said individuals involved in laundering illegally obtained funds or those already facing money laundering cases should not be allowed to benefit from any amnesty programme.
He also pointed out that similar attempts under the previous administration failed to produce meaningful results and were eventually abandoned.
“The government has already established several positive precedents in other areas. It should now demonstrate consistency in its anti-corruption position by refraining from introducing any unconstitutional and corruption-facilitating provision to legalise black money,” he added.