Scope to whiten black money29 June 2014
The 2014-15 budget will provide for legalisation of undisclosed income as in previous budgets-something that finance minister had said, would not be the case, when he presented the budget on June 5.
The move comes as no surprise not only because such opportunities were provided in previous budgets but also because powerful lobbies have been active to push for such provisions.
AMA Muhith on Saturday told Parliament that undisclosed income or 'black money' could be invested in real estate by paying a 'certain amount' of tax per square metre of property bought.
He, however, did not elaborate the rate of the tax.
Muhith has been against such provisions for whitening black money, despite many economists suggesting provisions to allow investment of black money in infrastructure.
He has said such provision does not help the economy at all.
In a post budget media conference on June 6, the minister made it clear there was no provision for legalising 'black money' in any sector in the proposed 2014-15 budget.
A day later, a section of economists suggested using black money in infrastructure but under 'strict' monitoring and after observing tight conditions.
The National Board of Revenue chief Ghulam Hussain, too, pitched for 'special investment opportunity' for undisclosed income to keep it in Bangladesh.
Hussain's pitch was echoed by economists who said if not invested in Bangladesh, the black money would find its way abroad.