Recover Tk 25,000cr black money next fiscal year: BEA
Bangladesh Economic Association yesterday demanded the government recover Tk 25,000 crore of black money in the upcoming fiscal year.
“The constitution has not given the right to anyone to enjoy unearned money,” said Abul Barkat, president of the BEA, at a press conference on the association's recommendations for fiscal 2018-19's budget.
Subsequently, the BEA called for a white paper on black money and a commission to work on the illegally earned money.
The total amount of undeclared income in the country would come to Tk 5 to Tk 7 lakh crore, it said.
Citing a finance ministry estimate, Barkat said black money accounts for 42-80 percent of the country's gross domestic product.
“This is a fact,” he said, adding that Tk 14,000-15,000 crore of black money has been whitened since 1972.
Some Tk 70,000-80,000 crore is siphoned off abroad every year; the BEA suggested recovery of Tk 30,000 crore by taking measures against people sending funds abroad illicitly.
“Many countries have been able to recover money transferred illegally abroad,” Barkat said.
The association also demanded the appointment of an ombudsman separately for the financial sector and formation of a special tribunal to deal with the top 100 loan defaulters.
ALTERNATIVE BUDGET
The BEA came up with a Tk 12.16 lakh crore alternative budget proposal, which is two and a half times higher than the government's likely budgetary outlay of Tk 4.90 lakh crore for next fiscal year.
A budget of this magnitude is necessary to become a developed nation in 10-15 years' time and establish a discrimination-free and secular society, he said.
In its 55-page alternative budget plan, the BEA wanted to collect Tk 9.90 lakh crore in revenue and highlighted 22 areas of 'new sources' to boost receipts. Apart from recovering black money and the siphoned-off funds, the BEA suggested imposition of wealth tax, higher collection from alcohol, land the transport sector. The platform of economists said less than 100 pay Tk 1 crore or above in taxes a year at present.
But as per its estimate there are at least 50,000 individuals with the capacity to pay such sums of tax a year.
Subsequently, it advised the government to form a revenue commission by involving experts from various professions. It also urged the government to keep the income tax rate for individuals between 3 percent and 10 percent and come up with measures to detect the high income earners.
The BEA also called for: steps to ensure jobs for all unemployed, export incentive for firms producing high-value items, continuation of farm subsidy and allocation in the budget for old homes and insurance schemes for marginal and landless farmers.
It also proposed raising public investment gradually to 8 percent of GDP and quadrupling the investment in the health sector. BEA General Secretary Jamaluddin Ahmed read out part of the proposal at the event.
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