Money-whitening scope to continue

In a U-turn, Finance Minister AMA Muhith today said the upcoming budget will allow legalising black money in two areas including real estate investment.

He said in parliament legalisation of undisclosed income on payment of 10 percent penalty on top of normal tax will also be available in the fiscal 2014-15 budget.

However, the opportunity to legalise money for investment in treasury bonds has been withdrawn due to lukewarm response.

A day after proposing the budget before the parliament on June 5, Muhith said the upcoming budget would not offer any opportunity to legalise black money.

"I tell you that the provision is cancelled from today," he said at a crowded post-budget press conference on June 6.

Barring a few exceptions, the scope for legalising black money was given, in one form or the other, in every budget.

Between fiscal 1971-72 and fiscal 2012-13, about Tk 13,808 crore was whitened. During the period, the NBR received taxes of Tk 1,455 crore, which is less than 1 percent of the revenue collection target for fiscal 2014-15.