Allowing legalisation of undeclared income contradictory to July uprising: CPD

The Center for Policy Dialogue (CPD) has strongly criticised the interim government’s budget for allowing the legalisation of undisclosed income (black money).

It says, such a move goes against the spirit of the July uprising.

“If this opportunity is granted, it will become impossible for middle and lower class people to buy plots or flats.” said CPD Executive Director Fahmida Khatun at a briefing at Lakeshore Hotel in the capital.

“We have always maintained that such opportunities to legalise undeclared money create a disincentive for honest taxpayers.”

The CPD added, “In the national budget, there has been proposed to legalise the undeclared income. If you buy an apartment, you can use it by showing undisclosed income and paying a special tax at an increased rate. But we have always said that the proposal to turn black money into white should be stopped completely.”

Referring to the issue of tax-free income, CPD noted that while the limit has been proposed to increase from Tk 3.5 lakh to Tk 3.75 lakh, it will only come into effect in the 2026–27 and 2027–28 fiscal years.

Compared to projected inflation at that time, this relief is ‘insignificant’, the organisation said.

Like in previous years, the tax burden will fall heavily on the lower-middle and middle-income groups, especially those earning between Tk 6 lakh and Tk 16 lakh annually, CPD warned.