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A total of 10,034 taxpayers have whitened their black money worth Tk15,000
crore in the first nine months of the current financial year
The holders of undisclosed income can whiten their money without any
question, according to the Finance Bill 2021 passed in the parliament on
Tuesday.
Finance Minister AHM Mustafa Kamal moved the bill in the house and it was
passed by voice vote.
But many disagree with the notion, saying instead that this is against economic
good governance and contradictory to the government's policy of zero
tolerance against corruption.
According to the bill, undisclosed income holders have to pay a higher tax of
25% on their undeclared income and have to pay 5% penalty on the computed
tax amount while whitening their undisclosed money by establishing factories
in the fiscal year 2021-22.
Holders can also whiten their black money in cash by depositing those in
banks, buying savings certificates, or investing in the stock markets.
Moreover, money can be whitened by buying lands and flats with paying the tax
per square meter depending on the location of property, according to the
Finance Bill 2021.
This opportunity will be available from the start of FY22 and will remain
unchanged till July 2022. The opportunity to set up new industries in economic
zones and high-tech parks with 10% tax is also going to be continued.
The bill was passed partly in response to the demands of market participants
including Bangladesh Securities and Exchange Commission, Dhaka Stock
Exchange (DSE) and Chittagong Stock Exchange.
Shakil Rizvi, director of the DSE, welcomed the government's decision and said
that this opportunity will be “very good” for the capital market.
He also said that the large amount of black money has to be brought into the
mainstream economy.
“This opportunity will discourage money laundering, capital flight and increase
investment, which will also play a role in increasing employment in the
country,” he added.
“But the tax rate has become a little higher; 20% tax would have been better.
Anyway, we still welcome the decision,” said the DSE director.
A total of 10,034 taxpayers have whitened their black money worth Tk15,000
crore in the first nine months of the current financial year.
Taxpayers did not take the opportunity to whiten black money by investing in
the stock markets, however.
From July to March, only 341 investors had invested their black money in the
stock markets, said a source from DSE.