[ Online ] 21/04/2022
 
Appetite to legalise black money wanes drastically
Despite offering the scope to legalise black money without asking any questions, the National Board of Revenue (NBR) received very poor responses from taxpayers in the current fiscal year of 2021-22, official figures showed.

Between July and February, it got only Tk 95.15 crore as tax from the holders of undisclosed wealth, which was meagre in view of Tk 1,980 crore that the NBR received in the previous fiscal year.

Some 12,039 taxpayers legalised their black money in 2020-21, the highest since independence.

Successive governments had allowed holders of undisclosed income to whiten their untaxed assets but that did not bring enough revenue before 2020-21.

A senior official of the NBR said an increase in the tax rate and the imposition of penalties were among the reasons for the drastic slump in the legalisation of undisclosed wealth.

Besides, a large number of taxpayers cleaned their assets and income in FY21 taking advantage of the low tax rate, he said.

In FY21, the government offered amnesty that black money-holders would not face any query from taxmen if they disclosed their undisclosed investment in shares, bonds and other securities as well as undisclosed cash, bank deposits and other financial instruments.

The tax authorities also extended the scope to taxpayers to legalise undisclosed moveable and immovable properties without questions on the payment of a specified amount of taxes on the properties based on the location of land, buildings and area of the property.

The NBR has tightened the scope this fiscal year but has kept the opportunity to legalise the undisclosed income or investment without facing any questions.

It has offered full amnesty to taxpayers who will invest in the setting up of new industries. Taxpayers who will establish factories this fiscal year will have to pay only 10 per cent tax on the invested amount, according to the NBR.

Yet only 2,313 taxpayers have shown their undisclosed wealth and income in the July-February period of the current fiscal year.

Of them, 2,258 whitened their money through investment in properties, showing bank deposits and cash, while 46 disclosed investments in securities.

Only nine taxpayers invested in industries, according to NBR data.