Business Report :
Setting the tax rate fixed 15 percent to legalise undisclosed money violates tax equity, said Binayak Sen, director general at the Bangladesh Institute of Development Studies (BIDS).
He also questioned the origin of the 15 percent tax rate proposed to legalize or “whiten” black money without scrutiny.
This rate could be 15 percent for some, 10 percent for others and 30 percent for others, depending on specific circumstances, he said.
Various factors lead to some money remaining unaccounted for in legitimate process, he said.
Sen supports providing the opportunity of legalising the undisclosed wealth.
He made the comments while speaking at a discussion on the proposed national budget for 2024-25 financial year and the medium-term economic outlook of Bangladesh, held at the BIDS office in Dhaka.
From the next fiscal year, taxpayers, including companies and firms, will again gain the opportunity to legalise their undeclared wealth without facing any question on their source.
According to the proposed provision, no authority can raise any question if any taxpayer, including companies, pay a 15 percent tax on cash, bank deposits, financial securities, or any other forms of wealth.
Furthermore, they will have to count a specific tax on properties — land, buildings, flats, or commercial spaces — to whiten their wealth. Finance Minister Abul Hassan Mahmood Ali in the budget speech said incidentally the introduction of a data verification system has created legal complications over the disclosure of undisclosed income and assets of various companies.