‘It’s constitutionally illegal’
The government is set to place its last budget in parliament on Thursday with an ambitious growth target and a provision for allowing whitening of black money for those who earned illegal money over the last four years.
“If the government allows black money in the next budget in the housing sector, it’ll be discriminatory and it’s in no way acceptable. It’s constitutionally illegal and ethically unacceptable,” TIB executive director Dr Iftekharuzzaman told UNB on Sunday.
He said it is difficult to own apartments and plots by those who earn honestly, and the black money holders will capture the entire market if it is allowed in the housing sector.
The TIB chief said corruption is having a stronger ground in policy framework with such a provision. “This is not desirable from a democratic government.”
Iftekharuzzaman said such a provision is just like rewarding the illegal earners instead of punishing them and discouraging those who are earning legally and paying taxes honestly. “We’re always against such provisions.”
And finally, he said, such provisions did not bring any significant benefit for the economy. “There’s no instance that it helped the economy in any way.”
The TIB head also said the present government had an election pledge to fight out graft, but it failed to live up to that commitment it made to people in the last four years by allowing the black money holders to legitimise their illegal money.
According to sources at the National Board of Revenue (NBR), the government will allow black money in housing sector for buying apartments and plots, and in the capital market.
The NBR will impose 10 percent tax on agreed prices for buying plots, and anyone can invest in the share market by giving 10 percent tax. The NBR is also likely to slap Tk 5,000 in tax for each sqf of a flat or a commercial space.
Recently, Finance Minister AMA Muhith said the existing provision for whitening undisclosed money with fine is internationally acclaimed as black money also exists in the US economy. “It’s very difficult to remove black money from the country.”
Quoting some studies and surveys, he said the existence of black money in Bangladesh represents 40 to 80 percent of the economy although nobody knows what is the fact?
