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No ‘black money’ provision in budget, but TIB warns it may return

No ‘black money’ provision in budget, but TIB warns it may return
TIB logo: Collected
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Transparency International Bangladesh (TIB) has cautiously welcomed the government’s decision to exclude, for the time being, any provision for legalising “black money” in the proposed national budget.

In a statement issued on Thursday, the anti-corruption watchdog also strongly demanded that the mandatory disclosure of asset declarations by public servants be made a prerequisite for implementing the proposed new pay scale for government employees.

Anti-corruption commitment

TIB Executive Director Dr Iftekharuzzaman said the decision to omit the “unconstitutional, discriminatory, and corruption-enabling” provision for legalising black money sends an important message in support of the government’s anti-corruption electoral commitment.

However, he cautioned that past experience shows such provisions are often reintroduced later through Finance Bills under various pretexts, such as investment and employment generation.

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“We hope that this unethical opportunity will not return in any form,” Dr Iftekharuzzaman said, noting that while such provisions have existed almost continuously since independence, they have yielded no real economic benefit and have instead discouraged honest taxpayers while contributing to a culture of widespread tax evasion.

Accountability in the new pay structure

Regarding the proposed new pay structure, Dr Iftekharuzzaman noted that its phased implementation, as recommended by the Pay Commission, reflects the government’s careful assessment of fiscal realities.

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He stated that the proposed salary increase is justified despite an 11-year gap, as government employees – much like professionals in other low- and fixed-income sectors – cannot ensure professional excellence or corruption-free service unless salaries align with the cost of living.

However, the organisation insisted that only those officials who regularly update annual declarations of income and assets for themselves and their dependent family members should be eligible for the new scale.

Dr Iftekharuzzaman emphasised that because the public ultimately bears the additional cost of the pay scale and its impact on inflation, asset disclosure is essential for accountability and corruption-free public service.

Tax administration and revenue

The TIB Executive Director appreciated proposals to reduce duties and taxes on essential goods and services, noting their positive impact on the daily lives of ordinary people.

He called for the effective implementation of budget commitments to enhance tax administration efficiency and ensure a harassment-free environment for honest taxpayers.

He further warned that technology-based monitoring alone would not prevent tax evasion, which he identified as a key reason behind the country’s revenue shortfall.

He stressed that the transition from a debt-dependent budget to a revenue-driven one would only succeed if the National Board of Revenue (NBR) is made corruption-free and collusion-based tax evasion is halted.

On a critical note, TIB expressed disappointment over the absence of a clear discussion or roadmap for ensuring good governance in the budget implementation process. Dr Iftekharuzzaman expressed hope that the final version of the budget would address these omissions.

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