Undisclosed money, popularly known as black money, holders are likely to get a good news as the government might allow them to legalise this kind of money in the upcoming budget, aiming to revamp country’s economy hit by the coronavirus pandemic.
The area of giving scope for whitening black money would be widen in the 2020-21 fiscal budget to be placed by Finance Minister AHM Mustafa Kamal on June 11 in Parliament.
“For improving revenue collection and boost private investment in the country the National Board of Revenue (NBR) might allow whitening black money without any question,” a senior Finance Ministry official told UNB.
He said that the COVID-19 outbreak and its impact on economy is compelling the government to think about giving the clemency to the black money holders.
Currently, there is scope for whitening black money in setting up industries and purchasing flats through giving additional charges on the applicable tax rates.Sources in the NBR said that the scopes will widen in the coming budget.
“There might be a proposal to whitening black money through giving 10 percent tax only where the NBR will not raise any question about the source of the money,” a senior NBR official said.
The NBR official said that the black money holders whatever be the source of their money might get the chance for the next two years.
He said that the NBR will not raise any question about the source of the money if the black money holders declared to invest the money in any productive sector.”The tax rate for this purpose would be 10 percent,” the NBR official said.
At present anyone can invest black money for setting up industries in economic zones and Hi Tech Parks at the rate of 10 percent and the NBR will not ask any question about the source of the money. This five years scope has been given till June 2024.
“Investment in new sectors like agri food processing industries and big infrastructures might be included in this clemency from the next fiscal,” the NBR official added.
But, he said that no one availed of this scope so far for investing in the economic zones and Hi Tech Industrial Parks.
For flat purchasing anyone can invest black money by giving additional taxes depending on the size of the flat and area without facing any question from the taxmen.
This scope is continuing from the past, but due to excessive imposed tax people did not show interest to avail of this chance.
The tax rate was reduced up to 30 percent from this fiscal, but no significant revenue was earned from this pocket for the NBR.
“Due to high penalty rate of whitening black money people who have this kind of money are reluctant to legalise their money, the government now wants to expand the scope to whitening the black money, that’s why it is now thinking to legalise the black money without any additional charges,” the NBR official said.
source: UNB
