The New Nation - Internet Edition

bdnews24.com, Dhaka

The government's proposal to allow legalise black money is against its election pledge, said Transparency International Bangladesh (TIB) in a post-budget reaction on Friday.

In a press release, TIB's executive director Dr Iftekharuzzaman said it was incompatible with good governance and prevention of corruption, the campaign promises of the ruling party.

In an unprecedented measure, finance minister AMA Muhith proposed "acceptance of undisclosed money without any question during the period from July 1 to June 30 , 2012 provided that 10 percent tax is paid and it is invested in certain new industries such as physical infrastructure facilities and shares of companies listed on the stock exchange.

"Awami League said in its election pledge that stern action will be taken against the owners of black money but its first budget will encourage them to evade tax," he said.

"On the one hand the government has pledged to increase revenue earning but on the other it is encouraging tax evasion.

"This is a contradictory position," he added

However, TIB welcomed the emphasis on public-private partnership in the proposed budget.

Reflection of election pledges to establish good governance and curb corruption in the budget speech was encouraging, it said.