Staff Reporter :
Former Bangladesh Bank governor Atiur Rahman has condemned the proposal to levy a 15 percent tax on legalizing black money, calling it morally unacceptable.
He emphasized that the highest tax rate on legitimate income stands at 30 percent, making the 15 percent tax on undisclosed money particularly unjust.
Speaking at a discussion titled ‘Budget Reaction Session’, hosted by the private research organization Unnayan Shamannay in the capital on Friday, Rahman argued that such measures send a misleading message about the government’s commitment to combating corruption.
During the budget speech on Thursday, Finance Minister Abul Hassan Mahmood announced the reintroduction of the opportunity to legalize undisclosed income, or ‘black money’, with a 15 percent tax payment to bolster the economy amid the current financial crisis.
This move has faced criticism from various quarters, including Transparency International Bangladesh (TIB), which termed it ‘unconstitutional’.
TIB expressed shock and disappointment over the unethical provision in the newly announced budget. The organization fears that the facility to legalize black money with just a 15 percent tax will discourage honest and legitimate taxpayers, as no authority will question the money and assets declared under this provision.
“This will foster a liberal environment conducive to corruption in the country. Furthermore, this opportunity undermines the ruling party’s election manifesto and its frequently reiterated pledge of zero tolerance against corruption,” TIB stated on Thursday.
TIB strongly demands that the government withdraw this provision allowing the laundering of black money. TIB Executive Director Dr. Iftekharuzzaman expressed frustration over the logic behind keeping the provision to whiten black money.
He also 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.
“Justifying such unethical, illegal, discriminatory, and unconstitutional provision, which renders the ruling party’s talk against corruption meaningless, is also deepening and widening the erosion of the moral and ethical backbone of society,” Dr. Zaman said.
“Furthermore, it is a clear government invitation to the people to be involved in all forms of corruption and illegitimate enrichment with the guarantee that such black money will be given clean certificates. In other words, the government is, in reality, advising people to be corrupt with a guarantee of impunity,” he added.
Dr. Zaman termed the provision of a maximum 30 percent tax on honest taxpayers as discriminatory and unconstitutional.
“For several reasons, this provision is unjustifiable. 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 who are subjected to up to 30 percent tax, whereas black money holders are being practically rewarded for corruption by offering the bait of only 15 percent,” he said.
Calling upon the government to end the long-standing and unconstitutional practice of providing opportunities to whiten black money, Dr. Zaman hoped that “the government will ultimately act with good sense, 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.”