2 sectors may get limited scope

Scope for whitening money may be kept limited to only two sectors in the next fiscal year in the face of criticism and poor response to the offer, finance ministry sources said.
The facility will be provided if money is invested in Bangladesh Infrastructure Finance Fund (BIFF), and no question will be raised about the source of the money.
The government has created the BIFF to finance big infrastructure projects including those in power and energy sector. Initially the government gave Tk 1,600 crore to the fund. There is scope for the private sector to invest in the fund.
Money whitening may also be allowed in cases of purchase of flats, apartments or floors for the next fiscal year (FY) but the tax rate may be increased, the sources said.
In the current FY, Tk 400 to Tk 1,500 tax per square foot is charged for whitening money in this category.
And investors in share market, and entrepreneurs setting up new industries are charged 10 percent tax for getting the facility.
Sources in the National Board of Revenue said the offer did not draw much response. In 10 months from July to April in the current FY, only 81 people took the opportunity, and whitened Tk 57 crore. Of them, 53 got the scope for buying flats.
Finance Minister AMA Muhith presents the Tk 1,32,170 crore national budget for FY 2010-11 in the Jatiya Sangsad at 3:00 pm today.
The budgetary target of revenue collection is Tk 93,000 crore. Of the amount, the NBR is to collect Tk 72,600 crore, which is more than 19 per cent higher than in the current FY.
In share market, no scope for whitening money is given to individual investors in the current FY, but persons, who made profit through institutional investment, are given the scope by imposing tax on 5 to 10 percent profit.
In the next budget, brokerage houses in share market will be brought under the VAT net. But tax at a reduced rate, may be 5 percent, will be charged on them, sources said.
The existing import duty structure will not be changed. But increased supplementary duty may be imposed on luxury items including 1,300 to 2,000 cc motor cars.
The finance minister will also present a concept paper on district budget and unified budget today. Besides, he might present a development plan on power and energy sector, the sources mentioned.