A history of Bangladesh’s black money whitening schemes

Successive governments in Bangladesh have
allowed undisclosed money to be legalised since independence, but the facility
saw its sharpest expansion in the 2020-21 fiscal year under the Awami League
government.
At the time, the government allowed holders of
undisclosed money to legalise assets by paying a flat 10% tax, alongside
indemnity protection.
The move triggered widespread criticism as
regular taxpayers were subject to tax rates of up to 30%, while holders of undisclosed
money were allowed to legalise assets at a much lower rate.
During that fiscal year, 11,839 individuals
legalised approximately Tk20,500 crore, the highest amount regularised in a
single year in the country's history. The NBR collected Tk2,064 crore in
revenue from those declarations.
Of the total amount, Tk16,830 crore in cash held
in banks or as cash under temporary NBR provisions was legalised by 7,055
holders of undisclosed money. The remainder was invested in land, apartments
and the stock market.
The facility was reintroduced in FY25 at a 15%
tax rate. Following the fall of the Awami League government, however, the
interim administration gradually withdrew the facility, particularly the
indemnity provision.
At present, individuals and companies can still
invest undisclosed money legally, but they must pay the applicable tax rate of
up to 30% along with a 10% penalty on the payable tax amount.
Under indemnity provisions, no government agency
outside the tax authority, including the Anti-Corruption Commission, can
question the source of the declared funds.
















