The government has retained the facility to legalise undisclosed income without questioning the sources through investment in certain sectors.
Parliament passed the Finance Bill for 2021-22 financial year by raising the fines for the option to legalise so-called black money in a session chaired by Speaker Shirin Sharmin Chaudhury on Tuesday in the presence of Prime Minister Sheikh Hasina, reports bdnews24.com.
Finance Minister AHM Mustafa Kamal did not say anything about the option in the national budget he proposed on Jun 3. The proposed Finance Bill did not touch the matter either.
A day later, he hinted that the government may retain the provision to legalise undisclosed income through payment of taxes at certain rates because it lacks data on the outcome of the option kept in the budget for the outgoing fiscal year ending Jun 30.
Now black money can be legalised through investment in new industries, stock markets, flats and plots, among other options.
The tax to legalise undisclosed income through investment in shares, bonds, mutual funds and other stock market instruments has been raised to 25 per cent from 10 per cent with five per cent fines. The fines will be 10 per cent if a person wants to draw the money within a year from the investment.
Dirty money can also be parked as cash, bank deposit, financial schemes and instruments, savings and other sorts of deposits, savings instruments or savings certificates by paying 25 per cent tax and 5 per cent fines on the taxes.
Undisclosed land, building or apartment can be legalised by paying taxes and fines at certain rates without facing any questions.
The tax rate is 10 per cent to legalise black money by investing in new industries.
Besides these, the new Finance Bill has retained the option to legalise black money by investing in hi-tech parks and economic zones until 2024 and plots and flats in the upcoming fiscal year.
Officials at the National Board of Revenue said people can also legalise undisclosed income by paying taxes in line with the Income Tax Ordinance. But they must reveal the source of the income in this case.
