The government is expected to scrap the black-money whitening provision in the Finance Ordinance 2025, with a final decision likely at the advisory council meeting scheduled for June 22.

Despite being retained in the interim government’s maiden budget ordinance on June 2, the provision has faced intense criticism from economists, civil society groups, and anti-corruption advocates. Sources within the National Board of Revenue (NBR) say a proposal is being prepared to eliminate the facility, which currently allows legalisation of undisclosed income through investments in real estate, land, or residential construction.

The ordinance had hiked applicable tax rates up to five times and limited the protection of the declared money by enabling agencies other than the tax department to question its source.

Finance Adviser Dr Salehuddin Ahmed had already hinted at a review of the policy during a post-budget press briefing, calling the measure “not commendable.”

Critics say the provision undermines honest taxpayers and fosters corruption. Dr Fahmida Khatun of the Centre for Policy Dialogue (CPD) and Dr Iftekharuzzaman of Transparency International Bangladesh (TIB) have both denounced the policy, calling it discriminatory and unconstitutional. They urged a broader revenue reform instead, including automation, institutional coordination, and stricter enforcement.

In FY2021, over 11,800 individuals whitened Tk205 billion, generating Tk20.64 billion in revenue. A similar opportunity was offered during the 2007–09 caretaker government.

The facility was reintroduced to cushion the pandemic-hit economy, but its continuation now appears increasingly untenable. If repealed, the provision will expire at the end of June.