Provision to whiten black money to be repealed

The interim government has decided to abolish the provision that allows the legalising of undisclosed money, commonly referred to as black money. 

This decision was made during the weekly meeting of the interim government's advisory council on Thursday, August 29, at the state guesthouse Jamuna. 

Syeda Rizwana Hassan, the adviser for the Ministry of Environment, Forest, and Climate Change, informed the media about the decision after the meeting.

The National Board of Revenue (NBR) is expected to issue a notification regarding this change soon.

Previously, during the presentation of the FY2024-25 budget, the Awami League government’s finance minister, AHM Mustafa Kamal, proposed an amnesty with significant tax incentives for individuals who had not declared their assets. This move was intended to boost revenue.

However, Transparency International Bangladesh (TIB) expressed shock and disappointment over the 'unethical' provision in the budget, which allowed the whitening of black money disguised as undisclosed income.

The anti-graft watchdog warned that the facility to legalize black money with just a 15% tax would discourage honest and legitimate taxpayers, as no authority would question the origins of the money and assets declared under this provision.