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% tax will discourage honest and legitimate taxpayers, as no authority will question the money and assets declared under this provision. This fosters a liberal environment conducive to corruption in the country, read a press release.
TIB said the opportunity undermines the ruling party's election manifesto and its frequently reiterated pledge of zero tolerance against corruption.
In light of these concerns, TIB strongly demands 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 legitimisation 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 the moral and ethical backbone of society. Furthermore, it is a clear invitation from the government to 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, the government is, in reality, advising people to be corrupt with a guarantee of impunity.”
Dr. Zaman termed the provision of a maximum 30% tax on honest taxpayers as discriminatory and unconstitutional.
He said, “For several reasons this provision is unjustifiable. It is distinctly contradictory to the Constitution, especially Article 20(2) which criminalises illegitimate income. It further violates the constitution as it is discriminatory against honest income earners who are subjected to up to 30% tax whereas the black money holders are being practically rewarded for corruption by offering the bait of only 15%.”
“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% tax was allowed to legalise 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.”
