In the proposed budget of 2019-20 opportunity was given to make black money into white by investing in realtor business, setting up economic zones and in building hi-tech parks.
On Thursday (June 13) Finance Minister AHM Mostofa Kamal presented the national budget of 2019-20 fiscal year in the Jatiyo Sangsad. On next June 30 in the budget session the finance bill is supposed to get approval.
In the budget speech it was mentioned that the income generated from economic zone and from the goods or service production activities were exempted from paying taxes for ten years. For increasing investment and for creating employment opportunities in the economic zones and in hi-tech parks, only ten percent tax shall have to be paid for the black money to make it white. In that case the income tax department cannot ask any question for the source of that invested money. In the proposed budget there is proposal to include such a rule in the present income tax ordinance.
During last few years it was discouraged to invest unshowed money in purchasing flats, apartment and constructing buildings. In present income tax law no question is asked for the source of money used for purchasing flats and apartments if taxes are paid at a definite rate. In the budget speech it was mentioned that as the present rate is higher so the tax payers are not responding satisfactorily.
It was proposed in the new budget to reduce the rate of the existing rate in purchasing flats and apartments to make the tax payers interested to show the income in the tax file voluntarily.
In true opportunities are given to encourage the individual to invest the black money in the private sectors. There is a draught like situation in individuals’ investment tendency during last few years but now the government expects if this opportunity is given then the money laundering from the country will reduce and the entrepreneurs will be encouraged to set up industries.
Late Finance Minister M. Saifur Rahman in the budget of 2003-4 fiscal year according to the existing income tax ordinance of 19(AAA) for the first time he gave opportunity to make black money into white for two years if invested for setting up industries. However after much criticism and debates the opportunity was cancelled. After a long period of a decade the present government wants to revive that rule of giving opportunity for making black money into white. But the economists always object to make provisions for making black money into white.
They opined that though such opportunities were given several times but there was no response in the investment in private sectors.