TIB criticizes govt for retaining black money whitening provision

Transparency International Bangladesh (TIB) has strongly criticized the decision to maintain the provision for legalizing black money in the proposed 2025–26 fiscal year budget.

Criticizing this move by the interim government, the corruption watchdog stated that it reflects a stance completely contrary to the objectives of state reform, particularly the core purpose of the Anti-Corruption Commission reforms.

TIB described the decision as unethical, discriminatory, and unconstitutional.

In a press statement on the announced national budget for FY 2025–26, TIB Executive Director Dr. Iftekharuzzaman said, “No matter how it is interpreted, this clearly undermines the core mission of state reform, especially anti-corruption efforts, showing how the interim government has yielded to the real estate lobby to enable corruption.”

He said that irrespective of the payable rate, this clearly violates article 20(2) of the constitution under which the state specifically commits to prevent possession of unearned income.

“It is also discriminatory because the real estate market will proceed more aggressively to become an exclusive zone of illicit income owners and deprive honest income earners of the possibility to afford any share of flats or buildings market. Above all, it is corruption-friendly because in reality the government is encouraging people to own unearned and illicit income throughout the year and get it legalized in the name of promoting arguably one of the worst corruption-affected real estate sector.”

The TIB Executive Director further stated that What is most alarming and disappointing is that the government’s decision will encourage corruption. In effect, the government is incentivizing citizens to accumulate illegal and undisclosed wealth throughout the year with the assurance that such black money will be legitimized at year-end.

“The justification being offered—favoring the real estate sector—is deeply problematic, especially since that sector has been identified as one of the most corruption-prone in the country. We strongly demand the permanent cancellation of this corruption-promoting opportunity to whiten black money, starting with its removal from the revised budget.”

The TIB also urged the government to investigate the sources of black money, hold those responsible accountable, and ensure equity and justice in the tax system.

It said that the TIB firmly believes that if the government genuinely wants to claim a firm and effective stance against corruption, it must permanently shut down all avenues for legalizing black money.

“Otherwise, anti-corruption activities and policy initiatives will be perceived by the people as mere eyewash, which will further deepen the culture of normalizing corruption and reduce the promise of establishing good governance to mere posturing.”

The TIB director emphasized that one of the main recommendations of the ACC Reform Commission—established by the current government—was to permanently remove all provisions allowing black money legalization, a recommendation supported by all political parties.

“However, by adopting a contradictory position, the interim government is embarrassing itself with this inconsistency.”