Govt okays legalising undisclosed money for 17th time sans questions

The government has once again decided to allow undisclosed money (popularly known as black money) holders to legalise their money without raising any question about its sources in the upcoming budget aiming at revamping the country’s coronavirus-hit economy.

Black money can be invested in the industry sector even outside economic zones and high-tech parks and this opportunity is available until June 2024, said an official of National Board of Revenue (NBR) on the condition of anonymity.

According to NBR sources, no one invested black money in high-tech parks and economic zones so far in the outgoing fiscal year.

The NBR official also said the real estate sector may also be provided the opportunity to invest black money without any question about the source. However, the provision of 10 percent penalty in the form of tax in these cases will remain in force.

Besides, black money holders can purchase flats in Dhaka, Chattogram, district towns and municipality areas with tax payment of Tk 500 to Tk 5,000 per square feet without facing any question from NBR.

Undisclosed money holders will also be allowed to invest in special bonds in the stock markets to boost the falling capital markets and create more employment.

Moreover, in FY2020-21, the government may as well allow black money holders to purchase land with a reduced tax.

Previously, black money holders could invest their money by paying 10 percent tax to the NBR only after disclosing the source of the money to the Anti-Corruption Commission (ACC).

A finance division official involved in budget preparation process echoed with the NBR official, adding that allowing black money in the budget system will bring back investment momentum to the coronavirus-hit stagnant economy.

“This scope to whiten black money will likely enhance investment and create employment in the country and will increase the government's revenue collection,” he said.

So far, the government has given the opportunity to whiten black money 16 times. About Tk 14,000 crore has been whitened during this period.

Finance Minister AHM Mustafa Kamal will place the next fiscal year budget before parliament on Thursday (June 11).

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