PM Seeks End to Black Money Provision

Prime Minister Tarique Rahman on Monday urged the finance minister to withdraw the proposed budget provision allowing the legalization of undisclosed income, commonly referred to as ‘whitening black money,’ while also recommending tax and duty cuts in several sectors.

The prime minister presented the proposals during the budget session in Parliament, where he addressed Finance and Planning Minister Amir Khasru Mahmud Chowdhury. The session, chaired by Speaker Hafiz Uddin Ahmed, began with a speech by Opposition Leader Shafikur Rahman before the prime minister took the floor.

“Normally, such demands come from the opposition. Even if I am not physically sitting there, today I would like to stand with them mentally,” Rahman said.

To ease the tax burden on individuals, the prime minister proposed increasing the tax-free income threshold beyond the levels outlined in the proposed budget. He recommended raising the exemption to Tk 400,000 for the 2026-27 and 2027-28 tax years, Tk 450,000 for the 2028-29 and 2029-30 tax years, and Tk 500,000 for the 2030-31 tax year.

Rahman said the proposed voluntary investment disclosure provision had generated public concern. He noted that the measure was originally intended to reduce taxpayer harassment caused by the underreporting of land values during property registration. However, because many viewed it as an opportunity to legalize undisclosed wealth, he urged the finance minister to withdraw the provision.

The prime minister also recommended scrapping the proposed requirement to submit a Taxpayer Identification Number (TIN) certificate for opening bank accounts, registering inheritance deeds and completing property mutation, saying the proposal had created public confusion.

Rahman further proposed reducing the existing 10% tax on private universities to 5%, provided the institutions increase investment in research, establish language education and language laboratories, and expand tuition-free opportunities for talented students from low-income families.

Members of both the treasury and opposition benches welcomed the proposals by thumping their desks in Parliament.

The prime minister also called for expanding tax benefits for indigenous communities in both the Chittagong Hill Tracts and the plains. He proposed exempting not only business and agricultural income but also salary income earned by members of those communities.

To support the shrimp industry and boost exports, Rahman recommended removing customs duties and value-added tax (VAT) on imported feed additives, probiotics, vitamins, minerals and essential equipment. He also proposed reducing import duties on various industrial raw materials.

In addition, he urged the finance minister to withdraw the 10% supplementary duty on honey imported for pharmaceutical and industrial use, eliminate the 10% regulatory duty on copper imports used in electrical wire manufacturing, reduce or remove proposed duties on PET resin, PVC, cold-rolled sheets and other industrial inputs, and lower the proposed customs duty on unprocessed cashew nut imports from 15% to 5%.