WB slams tax provision to legalize black money

Business Report :

The World Bank has criticized the government’s policy for legalizing undisclosed wealth through investments, stating that such policies discouraged honest taxpayers and encouraged tax evaders to continue to flout the law.
Also, these policies have failed to earn a significant amount of revenue, said the Washington-based lender in its Bangladesh Development Update published on Tuesday.
At present, taxpayers show their undisclosed assets in their tax returns through investment in apartments, buildings and economic zones and high-tech parks.
Taxpayers have to pay a fixed amount of tax per square metre depending on the location of the flats and buildings, and 10% tax on the invested amount of black money in economic zones and high-tech parks.
As per the income tax law, any such investment will be considered as ones which have already gone through the process of their source being explained with field officials of the tax administration.
The government provided the opportunity to legalize black money without question in FY21.