Provision for whitening black money unconstitutional, corruption-friendly: TIB

Expressing utter surprise and shock over the 'unethical' provision in the proposed budget to allow whitening black money disguised as undisclosed income, Transparency International Bangladesh (TIB) has urged the government to omit the provision.

TIB fears that the facility to legalize black money with just a 15 percent tax will discourage honest and legitimate taxpayers, as the provision keeps the process unquestionable by all.

Furthermore, this opportunity undermines the ruling party's election manifesto and its frequently reiterated pledge of zero tolerance against corruption, TIB added.

Expressing strong demand for withdrawal of this provision, TIB Executive Director Dr Iftekharuzzaman 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 with no authority to question the process.

Dr Zaman termed the provision of a maximum 30 percent tax on honest taxpayers as discriminatory and unconstitutional in comparison with the facility to use black money paying only 15% tax.

He said: “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."

Mentioning that compromising morals in an attempt to collect expected revenue will never succeed, he said it will be reasonable to question whose interests are being served by including such provisions in the budget.

Terming it is high time to curb such long-standing and unconstitutional practice of providing opportunities, Dr. Zaman hoped that that government will ultimately act with 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," he added.