Hasina says option to legalise undisclosed income is ‘like a bait’

The government is facing intense criticism for allowing people to launder so-called black money without facing any questions

Sheikh Hasina has compared the option to legalise undisclosed income without facing questions with using baits for fishing.

The prime minister commented on the matter at an Awami League programme to mark the Six Points Day of the party on Friday amid criticisms of the government for allowing people to launder so-called black money.

They will need to pay a 15 percent tax, according to a proposal made in the national budget for 2024-25 fiscal year announced on Thursday.

Economists, businesses, opposition politicians and anti-corruption activists condemned the move as the income tax for the people who show their earnings is up to 30 percent. They say the revival of the dirty money-whitening option will encourage corruption.

“This is not the case,” said Hasina. “Even the owner of a 1 katha (0.006 hectare) piece of land is a millionaire nowadays as prices have increased. But people don’t sell their land at the rate they show to the government. They sell it at higher prices and get some surplus cash.

“The new option is for them to bring the money to the right place instead of stashing it away.”

“It’s a system like placing bait to fish. The system existed in the past. It started during a caretaker government and the next governments continued it.

“We have also given the same option for people to bring their money to the banking system,” the prime minister said.

She described controlling inflation as a challenge in the national budget, and emphasised boosting production and supply to tackle it.

Hasina highlighted measures to safeguard the low-income people from inflation, such as family cards programme for commodities at subsidised rates, and social safety net programmes.

She said fulfilling the people’s needs was more important than boosting foreign currency reserves. “We need to feed them first. For that, we spent a lot.”

The prime minister said this idea of fulfilling people’s needs was prioritised in the national budget.

“We gave importance to the basic needs, such as food, health and education, and domestic industries and social safety in the budget,” she said.