Dirty money legalisation plan would grant state-backed protection to corruption: TIB

Transparency International Bangladesh (TIB) has expressed dismay over reports that the government is considering a provision to allow the legalisation of untaxed money in the proposed 2026-27 budget.

It called the plan unconstitutional, discriminatory, and akin to providing legal protection to corruption under state patronage.

In a statement issued on Thursday, the anti-graft watchdog reacted to media reports suggesting the government is considering an unconditional amnesty to legalise undisclosed funds in the national budget for the 2026-2027 fiscal year, leaving no room for any authority to raise questions.

TIB said providing such a corruption-enabling facility under the pretext of reviving the stagnant real estate sector, increasing industrial investment and accelerating economic growth would be “self-destructive” for the government.

The organisation said the move would effectively normalise corruption and irregularities through state patronage.

Demanding that such opportunities be permanently abolished, TIB also called for strict criteria to be followed if the government proceeds with a reported plan to facilitate the repatriation of money laundered abroad through a general amnesty.

In the statement, TIB Executive Director Iftikharuzzaman said successive governments since independence had continued provisions allowing the legalisation of “undisclosed income” in various forms, despite such measures being contrary to Article 20(2) of the Constitution.

“A new dimension was added during the previous authoritarian regime,” he said.

“Sometimes through ‘no questions asked’ provisions and sometimes through tax rates lower than regular rates, this unethical practice was institutionalised to encourage corrupt individuals.

“The same weak arguments about short-term financial gains and losses were used to justify retaining these discriminatory provisions.

“In reality, however, such measures have strengthened a culture of tax evasion and discouraged honest taxpayers earning lawful income.” he added.

Questioning the rationale behind the reported move, he said: “What message does a government elected with a strong public mandate and a commitment to taking a firm stance against corruption seek to convey by repeating this unethical and self-destructive practice?”

“In this regard, it is important for the government to sincerely evaluate public expectations and the country’s long-term welfare rather than prioritising the interests of opportunistic and vested groups.”

Referring to reports that the government is considering a general amnesty to encourage the return of funds held abroad by Bangladeshi citizens, he said such a plan could be acceptable if it formed part of a genuine effort to repatriate money from overseas.

However, he stressed that individuals involved in laundering illegally earned money must not be allowed to benefit from such a facility.

“Moreover, those already facing legal proceedings over money laundering must be brought under accountability, and the government must ensure that no form of general amnesty applies to them under any circumstances,” he said.

The National Board of Revenue (NBR) is reportedly considering allowing the disclosure of money exchanged outside the officially registered value of land transactions in the next fiscal year so that the government can collect tax on those funds at the standard rate.

Under the proposal, both buyers and sellers of land or flats would be required to declare such amounts in their income tax returns.

However, no agency would be permitted to question the source of the funds, according to the reported plan.