Black money whitening privilege withdrawn

The interim government has withdrawn the controversial provision allowing the legalisation of undisclosed income in the upcoming fiscal year, Finance Adviser Salehuddin Ahmed said today.

The announcement came at a press conference after the advisory council approved the Tk 790,000 crore budget for fiscal 2025-26, a 1 percent reduction from the original allocation for the current fiscal year ending on June 30.

Earlier, the Finance Bill 2025, unveiled on June 2, had proposed retaining the scope to legalise untaxed assets through investment in real estate -- albeit at a higher cost.

That provision has now been scrapped following widespread criticism.

Civil society groups, economists, and anti-corruption watchdogs had strongly opposed the move, arguing it would legitimise illicit wealth and discourage honest taxpayers.

The Transparency International Bangladesh warned it would fuel corruption, while the Centre for Policy Dialogue described it as a betrayal of the spirit of the July Uprising.

The think tank said such privileges undermine tax justice and the rule of law.