We highly applaud Chief Adviser Professor Muhammad Yunus-led interim government’s decision to cancel the provision of whitening black money. The interim government in a recent meeting of the Council of Advisers has taken a clear decision against the provision of whitening black money.
We think the interim government has attached the highest importance to moral issues instead of whatever money is coming through whitening black money. The immediate past government had given scope for black money holders in the national budget for fiscal 2024-25 keeping a provision of legalising undisclosed money by giving a 15 percent tax.
Sheikh Hasina-led erstwhile government made room to allow both individuals and companies to whiten money without facing scrutiny and by paying a 15 percent tax. According to the provision, no authorities can raise any question if a taxpayer pays tax at fixed rates for immovable properties such as flats and land and 15 percent tax on other assets, including cash, irrespective of the existing laws of the country.
It was shocking and disappointing as past budgets allowed the whitening of black money disguised as undisclosed income. If the interim government did not stop this practice, the provision would continue facilitate to legalise black money by just paying 15 percent tax.
This practice would discourage honest and legitimate taxpayers, as no authorities would question the money and assets declared under this provision. Keeping the provision to legalise black money in the budget, the previous government had encouraged promoting corruption in lrage scale.
Interim government has attached
the highest importance to moral
issues instead of whatever money
is coming through whitening black money.
If black money can be whitened by giving 15% tax, there is no difference between us, the honest taxpayers, and them (holders of black money). We think the black money made through corruption should be confiscated instead immediately. If the black money can be whitened through tax, holders of black money would be encouraged to indulge in more corruption and irregularities.
The interim government must be cautious to ensure that there remains a distinction between one earns money and another gets money easily. Earning money does not match with getting money easily.
The government does not earn much from the provision to whiten black money. Such practice raises questions about values, norms, ethics, transparency, and accountiblty.
The immediate past government’s allowing the whitening of black money was akin to licencing corruption. The interim government will have to curb corruption and tax rate to reduce black money.
It is the while-collar people, not the low-income ones who create black money. With the provision of whitening the black money, many criminals whitened their black money in the country, besides laundering those abroad in the last 15 years.
Sheikh Hasina-led government had given this opportunity to become a legal guarantee for people with dirty money to earn more money illegally, which in any case is unethical, corrupt, discriminatory, and unconstitutional.
They (past government) had resorted to malafide tactics to retain a provision of whitening black money. They had given legal guarantees to those who have black money, to make more dirty money.
On the other hand, they also tempted honest citizens to sink into corruption. We hope, the interim government will take effective steps to ensure transparency, accountability, and fairness in the financial sector.
