Opportunity to whiten black money in next FY

The government is going to allow converting black money into white in the upcoming national budget for the fiscal 2020-21 in order to face the economic challenge and crisis as well caused by Covid-19.

The finance minister has proposed a provision that will allow investors to legalize black money through investment with no question on the sources of the funds so long as the investors pay a 10 percent tax on the invested amount, the finance ministry sources said.

At the same time, the government is going to give special discount for corporate taxpayer and the country’s bond market, they added.

Finance Minister AHM Mustafa Kamal is scheduled to place the budget in national Parliament on 11 June, announcing a tax incentive package during the presentation, they informed.

Considering the ongoing Covid-19 epidemic, it has been informed that no additional tax burden will be imposed on the people in the upcoming budget, they mentioned.

According to the National Board of Revenue (NBR), the government plans in the budget to bring black money into the mainstream of the economy to alleviate the crisis.

The government has given chance the investors to legalize black money through investment in new sectors including in capital market, special economic zones (SEZs) and high-tech parks by providing only 10 percent tax on the invested amount, they said adding that, this opportunity is valid till June 2024.

Economists said the Corona has now created a crisis in the country.
Hence, black money should be allowed in different sectors like the establishment of Corona Hospital, medical assistance, they added.

In this regard, the former NBR chairman Mosharraf Hossain Bhuiyan said huge investments are needed for the country's economy at the moment.

So, in this case, black money can be a source of capital, he added.
Bhuiyan said the budget may stipulate that if money smuggled abroad is brought into the country, no question will be asked, it will be considered valid.

At the same time, if money is brought from abroad, the source will not be asked, than many people will bring money to the country, he mentioned.

The government should keep some provisions as the Anti-Corruption Commission will not be able to harass anyone who will invest black money in the country by providing tax.

Former deputy governor of Bangladesh Bank Khandaker Ibrahim Khaled said the government had taken many measures in several times before to bring black and smuggled money with 10 percent tax into the mainstream of the economy.

No response was received from them, he said adding that, this means that those who own black money do not want to make black money white even with a single tax.

That is why, the government should find a new approach as black money owner can get a chance.
As part of its move, the government can declare completely free from income tax in the establishment of Corona Hospital, medical assistance by investing black money.