[🇧🇩] Corruption Watch

[Saif]

Most TIN holders didn’t submit returns in past 10yrs: NBR chair

National Board of Revenue chairman Abdur Rahman Khan said that laws and rules regarding taxes had not been implemented fully and among the 1.13 crore taxpayers or tax identification number holders in the country, 80-85 lakh taxpayers had not submitted a tax return in the past 10 years...

www.newagebd.net

Most TIN holders didn’t submit returns in past 10yrs: NBR chair
Staff Correspondent 17 March, 2025, 22:07

Abdur Rahman Khan

National Board of Revenue chairman Abdur Rahman Khan said that laws and rules regarding taxes had not been implemented fully and among the 1.13 crore taxpayers or tax identification number holders in the country, 80-85 lakh taxpayers had not submitted a tax return in the past 10 years.

This means the enforcement at the field level is still insufficient, he added.

He was speaking as chief guest at a view exchange meeting titled ‘Economic Dialogue: Revenue Management and Mass Media’ organised by the Bangladesh Civil Service (Taxation) Association on Monday in the capital Dhaka.

He said that the NBR made the remittance receipt through the legal channel tax-free to encourage expatriate earners.

‘Surprisingly, we found a taxpayer, who brought Tk 730 crore as remittance by showing himself as wage earner, to evade the tax. Such kind of activities widened the inequity,’ he added.

He said that such issues had to be solved together.

When journalists asked about the names of tax evaders, the NBR Chairman said that they would disclose the names of such oligarchs after taking proper action against them.

‘We are working to end frequent policy changes through some clear-cut guidance,’ he added.

Regarding a question about a super tax – a type of tax imposed on oligarchs and the super-rich, the NBR chairman said that currently, the country did not have any tax on the super-rich.

However, he said, as everything is now online, they are thinking again about implementing a super tax on the superrich.

He also said that the media and the NBR must play vital roles in creating public awareness, expanding the tax net and resolving the problems.

Doulat Akhter Mala, president of the ERF, said that journalists’ main obstacle in working with the NBR was the lack of open data to analyse and quantify something.

She urged the NBR to increase resources in the research and analysis sector. She also urged engaging journalists in the impact assessment level of policies and also suggested to introduce media fellowships and media awards for journalists.

The presentation suggested introducing a super tax, sin tax, entertainment tax, etc.

Mohtasim Billah Faruki, president of the BCS (Taxation) Association, Syed Mohidul Hasan, secretary general of the association, and GM Abul Kalam Kaikobad, member (tax administration and HRM) of NBR, also spoke at the event.​

 

[Saif]

Corruption waning, but still stubborn

Corruption in Bangladesh has not been eradicated and remains quite difficult to eliminate, according to Commerce Adviser Sk Bashir Uddin.

www.thedailystar.net

Corruption waning, but still stubborn
Bashir says

Photo: Collected

Corruption in Bangladesh has not been eradicated and remains quite difficult to eliminate, according to Commerce Adviser Sk Bashir Uddin.

Bashir made this comment at a seminar organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at its auditorium in Dhaka, yesterday.

"The advisory council does not take any money. From the chief adviser to all other advisers, no one is here for financial gain," he said.

"These individuals [the advisory council] did not come here for money. Instead, our working relationship is transparent. We learn from one another and work together. This itself is a sign of reduced corruption," Bashir added.

The commerce adviser further claimed that the large-scale corruption, which previously led to the theft of Tk 28 lakh crore, is no longer occurring at the same level.

"That level of theft is no longer happening. However, corruption has not been eradicated -- it is quite difficult to eliminate," he said.

Among the most counterfeited items in the world, the US dollar ranks at the top, the adviser noted.

"This cannot be stopped overnight -- it is a very challenging task. However, we have taken various initiatives to address these issues. Due to these measures, corruption has decreased, and it will continue to decline further in the future," he concluded.

Adviser said that to tackle the challenges of post-LDC graduation, sector-based associations and the business community must work together.

He said that in trade, no country is a friend—everyone is a competitor. Accepting this reality, businesses must build consensus among themselves.

The opportunities ahead are far greater than the challenges, and by working together, these opportunities can be seized, he added.

Bangladesh is scheduled to graduate from the Least Developed Country (LDC) category to a developing nation on November 24, 2026, after meeting all three graduation criteria: Gross National Income per capita, Human Assets Index, and Economic and Environmental Vulnerability Index.

FBCCI Administrator Md. Hafizur Rahman, said that one of the key challenges Bangladesh will face after LDC graduation is product diversification.

He stressed the need to identify priority sectors and products and develop targeted strategies accordingly.

Khondaker Golam Moazzem, research director of the Centre for Policy Dialogue, advised businesses to prepare for operating under the new policy framework in the post-LDC era.

"We need to step out of our comfort zone, and we must innovate new products and explore new markets," he said.

"We cannot survive in competition by focusing on how much tax relief we received from any country or what support the government provided," he said.

Moinul Khan, chairman of the Bangladesh Trade and Tariff Commission, said the interim government is committed to addressing the challenges of post-LDC graduation and resolving issues in the private sector.​

 

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Securing Bangladesh's export sector against fraud

For many years, dirty money has been drained from Bangladesh to various international locations. A businessman from Chattogram, known for taking over multiple banks and channelling substantial amounts as loans, selected Singapore as the sanctuary for his laundered money where he established a billi

thefinancialexpress.com.bd

Securing Bangladesh's export sector against fraud
SYED MUHAMMED SHOWAIB
Published :
Mar 22, 2025 00:07
Updated :
Mar 22, 2025 00:07

For many years, dirty money has been drained from Bangladesh to various international locations. A businessman from Chattogram, known for taking over multiple banks and channelling substantial amounts as loans, selected Singapore as the sanctuary for his laundered money where he established a billion-dollar business empire. Another corrupt politician, formerly a minister, adopted a more flamboyant approach. He invested his ill-gotten wealth into numerous luxury properties in London, Dubai, and New York. Many government officials, however, reportedly prefer the upscale neighbourhoods of Toronto, Canada, as a safe place to reside with their laundered wealth. The fact that money laundering is a financial crime with potential for prosecution and punishment did little to deter them from engaging in it. According to the White Paper on the state of the economy released last December, approximately $240 billion has been illicitly transferred out of the country in the last 15 years, a practice that depletes national wealth while enriching a select few overseas.

Bangladesh's economy is heavily reliant on export earnings, with the garment sector contributing over 80 per cent of total exports. While exports grew significantly, reaching $55 billion in 2023, the actual figures could have been considerably higher without illicit money transfers. With an average GDP growth of 7.0 per cent, the authorities have so far felt little urgency to address money laundering's impact on exports. However, as the country prepares for LDC graduation in 2026 which will result in the loss of duty-free access to key markets, the economic drain caused by money laundering can no longer be overlooked.

For now, the government is revising export policies to fortify the sector. One major change has been a reduction in cash incentives for exporters. Previously, Bangladesh offered cash assistance ranging from 1.0 per cent to 20 per cent to enhance export competitiveness. However, from January 1 to June 30 this year, the maximum rate was lowered to 15 per cent, with a minimum of 0.5 per cent. This adjustment is part of a gradual phase-out process, because when Bangladesh will become a developing country, under World Trade Organization (WTO) rules it will be required to fully eliminate cash incentives. The WTO considers direct cash subsidies on export receipts trade-distorting, so it prohibits such practices in both developing and developed nations.

Cash subsidies are meant to strengthen export competitiveness, but, as revealed by numerous media reports, they've become a gateway for exploitation. Some companies have taken advantage of this government policy by falsely declaring exports, often with the help of corrupt customs officials and clearing and forwarding (C&F) agents. In many cases, no goods were even shipped, yet fraudulent claims led to the payout of tens of millions of taka. Compounding the challenge are external trade barriers such as anti-dumping measures. For example, India imposed anti-dumping duties on Bangladeshi jute and jute products, which significantly reduced exports to India and effectively nullified any benefits gained from the subsidies.

The long-term sustainability of export growth cannot depend on cash incentives. Businesses must move beyond reliance on subsidies as a crutch and focus on building their own competitiveness. This mindset of pursuing exports at any cost created a high-risk environment that opened avenues for money laundering. As Bangladesh transitions to a post-LDC era, phasing out subsidies must be paired with structural reforms that will prevent illicit financial flows within the export sector.

A significant portion of the illicit financial outflow occurs through trade and business. One common method used is mis-invoicing-undervaluation of exports and overvaluation of imports. Such exploitation of loopholes in the banking sector's export-import mechanisms has allowed financial fraud to flourish on a massive scale.

The back-to-back Letter of Credit (LC) system, widely used in the garment industry, is a prime target for money launderers. Under the system, raw material imports are financed against export orders. While regulations are in place to ensure import costs do not exceed export revenue. But these rules are often flouted. The Bangladesh Financial Intelligence Unit (BFIU) has uncovered such a case at Premier Bank's Narayanganj branch where 18 entities were provided with excessive unauthorised back-to-back LC facilities far beyond the allowable limit. This scheme facilitated the siphoning off Tk 6.21 billion through fraudulent transactions.

Even when staying within the regulatory limit, back-to-back LC transactions can still be susceptible to manipulation for money laundering. A key vulnerability lies in the proforma invoice-a preliminary bill of sale detailing goods or services, including their description, quantity, price, delivery, and payment terms. Banks are tasked with reviewing these invoices to ensure they align with master LCs, verify supplier credibility, and assess the reasonableness of pricing. However, the absence of a standardised price leaves banks without a reliable benchmark to cross-check invoice values.

In practice, bank employees often resort to informal methods to verify pricing, such as conducting Google searches. This approach is unreliable and ineffective. Consequently, banks struggle to detect over-invoicing and other fraudulent pricing tactics used in trade-based money laundering.

To tackle this issue, the Bangladesh Bank should create and maintain a comprehensive, regularly updated price list of all exported and imported goods. This list should account for market fluctuations, product quality, brand, model, and economies of scale. Making this database accessible to all banks online would enable them to quickly identify discrepancies between LC prices and official prices and help block suspicious transactions. To ensure accountability, punitive measures should be enforced against banks that neglect these checks despite access to the data.

A price list is not a cure-all, but it is a practical step towards securing the export sector's future.

By reducing illicit financial outflows and mis-invoicing, it could redirect billions of dollars from fraudulent trade into legitimate export revenue, boosting foreign exchange reserves and the economy.​

 

[Saif]

'Take action against corrupt employees'

Public admin ministry directs all secretaries and heads of government offices and agencies

www.thedailystar.net

'Take action against corrupt employees'
Public admin ministry directs all secretaries and heads of government offices and agencies

The Ministry of Public Administration has directed all secretaries and heads of government offices and agencies to take action against corrupt employees working across various ministries, departments, and organisations.

The directive was issued on March 20, a month after the decision was made by the Advisory Committee on Public Administration on February 20.

In a letter signed by Deputy Secretary Jamila Shabnam addressed to all secretaries, the ministry said, "Officials and employees who are widely perceived as corrupt based on intelligence reports are to be subjected to departmental action as per directives."

Following the decision of the Advisory Committee on Public Administration, the directive has also been sent to the directors general, executive directors, managing directors, and chairpersons of government agencies, as well as divisional commissioners and deputy commissioners.

The government formed the Advisory Committee on Public Administration on January 8, with Finance Adviser Salehuddin Ahmed as the chairman and Information Adviser Mahfuj Alam as member secretary, to provide recommendations on the recruitment, transfer, and disciplinary matters of officials from the rank of joint secretary and above, including divisional commissioners and deputy commissioners.​

 

[Saif]

Case filed against former BNP leader for illegally storing VGF rice in Kurigram

he VGF rice was recovered from a maktab (a centre for teaching Arabic) run by the imam of a local mosque

www.thedailystar.net

Case filed against former BNP leader for illegally storing VGF rice in Kurigram

VGF rice recovered at Kaliganj Bazar area of Nageshwari, Kurigram. Photo: STAR

A case was filed against a former BNP leader this morning on charge of illegally storing around 3,800 kilogrammes VGF (Vulnerable Group Feeding) rice in Nageshwari upazila of Kurigram.

The VGF rice was recovered from a maktab (a centre for teaching Arabic) run by the imam of a local mosque at Kaliganj Bazar next to the union parishad yesterday.

Locals alleged that BNP leaders and activists forcibly took share of VGF cards from the chairman and members of Kaliganj Union Parishad. The rice was withdrawn through the VGF cards and deposited in the maktab by a group of people led by Jamal Uddin, who was the former general secretary of Kaliganj union unit of BNP.

Nageshwari Upazila Cooperative Officer Nur Kutubul filed the case today with Kaliganj Police Station in connection with the incident.

The Upazila Assistant Commissioner (land) Mahmudul Hasan said Jamal Uddin has been in hiding since the VGF rice recovery incident.

He added that locals found the VGF rice kept in the maktab and then informed the administration. "I visited the scene and seized the rice. It is being investigated whether the Union Parishad chairman and members are involved in this matter."

When contacted, Kaliganj Union Parishad Chairman Reazul Islam said that VGF rice was distributed among the beneficiaries yesterday. However, he said that no local BNP men forcibly took the VGF cards.

Since the incident happened outside the union parishad, the chairman and members are not responsible for it, he added.

When asked about that how Jamal Uddin collected the VGF rice, he replied that he did not know.

Kaliganj Bazar Jame Mosque Imam Ismail Hossain said, "Jamal Uddin took the key of the maktab from me. He had stored VGF rice in the Maktab. I am not involved in this matter."

Jamal Uddin's mobile phone was found switched off when this correspondent tried to reach him for comment.

Nageshwari Police Station Officer-in-Charge (OC) Rezaul Karim Reza said that a drive is being launched to arrest the accused. He said, "The Imam of the mosque, Ismail Hossain, was questioned and released last night."​