Bangladesh revenue administration has abolished the black money whitening provision, which allowed individuals and companies to legalize undisclosed income by paying a 15% tax, avoiding scrutiny. National Board of Revenue (NBR) deemed the provision “discriminatory” against a fair tax system, as it allowed a lower tax rate compared to the standard 25% income tax and additional wealth surcharges of up to 35%.
This decision follows criticism from various sectors and a directive from the interim government, led by an advisory committee including Prof. Muhammad Yunus. Despite its intention to boost the economy, the provision had limited success, with only Tk 45,522 crore legalized between 1972 and 2022, generating Tk 4,641 crore in taxes.
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