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Govt plans to legalise black money investment with penalty


Published : 23 Jun 2021 09:58 PM | Updated : 24 Jun 2021 11:30 PM

The government plans to offer an opportunity to legalize black money investment with penalty in some selected sectors in the next fiscal year beginning from 1 July. The offer would be subject to paying 25 percent tax plus a 10 pc penalty on the payable tax.

The investment of untaxed money in the stock market; undisclosed bank deposits, savings instruments and undisclosed property such as flats, will be allowed on similar conditions, said an official of NBR.

The National Board of Revenue (NBR) on Tuesday sent such a proposal responding to demands from the business community and other investors, the official informed.

The government will allow legalizing of undisclosed properties such as residential flats, paying Tk200-Tk6,000 per square metre depending on sizes and locations, alongside the penalty.

NBR has already incorporated a legal indemnity provision in the finance bill amendment to prevent relevant government agencies from asking any questions about the sources of such money.

As per the NBR proposal, the applicable rate will be 25 pc – the highest tax rate for an individual investment in the stock market, and a 10 pc penalty on the tax amount for ensuring justice to other regular taxpayers.

If anyone withdraws the investment before one year, he/she must pay another 10 pc in additional penalty, the official further added.

The officials also mentioned that the govt is offering the opportunity to make scope for the normal economy which is affected by Covid -19 and also helps to prevent money laundering. 

As per the proposed provision, people who will avail the facility to invest in securities such as stocks, mutual funds and bonds will have to pay a total 27.5 pc tax (25 pc regular tax and 10 pc penalty on tax amount) within 30 days of their investments.

However, in the outgoing fiscal year, there is a provision offering the black money whitening facility by paying only a flat 10 pc tax.