The government on Monday proposed repealing the controversial Section 18A of the Bank Resolution Act, reversing a provision that had drawn widespread criticism after the law was enacted earlier this year.

It also moved to withdraw the budget provision allowing the legalization of undisclosed income and assets, ending the proposed tax facility before it comes into effect.

Presenting the proposed amendments in parliament, Prime Minister Tarique Rahman said the decision to repeal Section 18A was taken in light of recommendations from stakeholders.

He also proposed removing the special tax facility for legalising undisclosed money as part of the government’s amendments to the Finance Bill and related legislation.

Section 18A was introduced when the Bank Resolution Ordinance was replaced by the Bank Resolution Act earlier this year.

The provision allowed former shareholders of a bank placed under resolution to submit proposals to reacquire the bank’s shares, assets and liabilities, subject to approval by Bangladesh Bank.

The provision had been questioned by economists, bankers, business leaders and political parties after the law was enacted.

Critics argued that it could allow former owners of distressed banks to return under the resolution framework.

“The proposal has been made to repeal the controversial Section 18A of the Bank Resolution Act in light of the opinions received from stakeholders,” the prime minister told parliament while presenting the amendment package.

The government, however, is retaining the rest of the Bank Resolution Act, which provides a legal framework for resolving financially troubled banks through measures including mergers, acquisitions, bridge banks and asset transfers.

The proposed amendment removes only Section 18A from the legislation.

The prime minister also proposed withdrawing the provision in the national budget that allowed taxpayers to legalise undisclosed money by paying a prescribed tax.

“The provision for legalising undisclosed money has been proposed to be withdrawn,” he said.

The facility had been included in the proposed budget for the 2026-27 fiscal year and would have allowed individuals to declare previously undisclosed income or assets by paying tax at a specified rate.

Under the proposed amendment, taxpayers will no longer be able to avail themselves of the special tax treatment for undisclosed wealth.

The proposals were placed before parliament as part of a package of amendments to the Finance Bill and other laws related to the government’s economic agenda.

If approved by parliament, the amendments will repeal Section 18A of the Bank Resolution Act and remove the black money whitening provision from the budget before the new fiscal year comes into effect.