'Against reform agenda': TIB blasts govt over black money legalisation scheme

Transparency International Bangladesh (TIB) has poured scorn on the interim government's decision to leave scope for the legalisation of black money in the proposed national budget for the 2025-26 fiscal year.

The anti-graft watchdog says the move contradicts the core purpose of state reforms, particularly the reform of the Anti-Corruption Commission (ACC), labelling the initiative as unethical, discriminatory, and unconstitutional.

On Monday, Finance Advisor Salehuddin Ahmed presented a Tk 7.89 trillion budget proposal for FY26.

The budget speech included a provision allowing investment of black or undisclosed money in the housing sector to legalise it, albeit with significantly higher tax penalties than in previous years.

Reacting to the provision, TIB Executive Director Dr Iftekharuzzaman said, regardless of the justifications, it shows that the government has ignored the fundamental goal of anti-corruption reforms.

“At the same time, it has surrendered to the power of the real estate lobby by encouraging corruption. Whatever the tax rate may be, this is a clear violation of Article 20(2) of the Constitution, which requires the state to ensure that unearned income is considered illegal. Offering such an opportunity is also discriminatory, as it will allow those with illicit funds to dominate the housing market, thereby excluding honest earners from owning apartments or property shares.”

Iftekharuzzaman added that the decision is particularly concerning as it promotes corruption.

“The government is effectively encouraging citizens to accumulate illegal and undisclosed wealth throughout the year and then offering a promise to legalise that wealth at the end of the year. The sector that the provision is being used to appease, the real estate sector, ranks as one of the most corrupt in the country. We demand that this corruption-friendly provision for whitening black money be immediately revoked.”