Chance to Convert Black Money into White Is Like Wreath-laying Gift to Corrupts

Transparency International Bangladesh (TIB) has expressed its displeasure over the passage of the Finance Bill 2021, keeping the opportunity to whiten the undisclosed money even though it was not in the proposal.

The agency expressed outrage in a statement sent to the media on Wednesday (June 30th).

TIB is considering it as a wreath-laying gift to the corrupt and its patrons in the final judgment, despite the provision of so-called additional taxes and nominal fines for everything from cash to savings certificates, bank deposits, plots and flats or opportunities for new investments. Because this opportunity given without question is going to become a legal guarantee for the owners of black money to earn more illicit money, which in any case is unethical, corrupt, discriminatory and unconstitutional.

How was it re-added to the budget even though there was no mention in the budget announcement? In a statement, Dr Iftekharuzzaman, the executive director of TIB, said that the government has resorted to evil tactics to keep the black money white. Because, in the name of fairness and equity, the Finance Minister did not consider the matter first; he left it to the judgment of which morality, he did not give the explanation even when the money bill was passed.

In view of the situation, it seems that the opportunity was not initially included in the budget to avoid controversy and criticism. Although the matter was under active consideration of the government from the very beginning. This not only calls into question the transparency of the budget process but also signals the gradual disappearance of a culture of accountability within the government. The government's move is undermining the prime minister's pledge of "zero tolerance" against corruption.

In the passed bill, provision has been made for taxation at the rate of 25 per cent and 5 per cent penalty on the total tax for laundering of black money through shares, bonds, mutual fund units, capital market investments, cash and bank deposits. This rate was 10 percent in the current financial year.

In addition, there is an opportunity to whiten the black money by buying land, buildings and apartments with a certain amount of taxes and fines in proportion to the area. In this regard, the executive director of TIB said that no matter what message the government does not want to give by imposing taxes and fines, the exchange rate cannot be comparable in any way as the opportunities for immorality and mischief have become institutionalized. While this may temporarily create an opportunity for higher taxes, the moral defeat of the government in the face of corrupt vested interests is truly alarming. This position of the government is discriminatory, corrupt and a clear violation of Article 20 (2) of the Constitution, which can never be desirable.

In the context of keeping the opportunity to whiten the black money with only 10 percent tax to set up a new factory. Iftekharuzzaman said the government has never released an account of how much money has been invested in the economic zone and high-tech parks, even though such opportunities have been set up in advance.

On the one hand, the government is giving legal guarantees to the black money owners to make new black money and on the other hand, it is tempting the honest citizens to be immersed in corruption. Considering the overall situation, it would not be an exaggeration to say that the institutionalization of corruption in the country is on the rise, which is a real disappointment. Nevertheless, TIB hopes that the government will take effective steps to ensure transparency, accountability and fairness in the financial sector.