Deputy Leader of the Official Opposition in Parliament Raushon Ershad on Saturday supported the government move to let people legalise their undisclosed income or black money in the budget for fiscal 1919-20. “There is a scope to whiten black money in every country. Our businessmen should be given the opportunity,” she said while speaking at the parliament.
To back up her stance, she said, “If we allow black money to whiten, the wealthy will invest. If not, money will be trafficked.” The move will help generate employment opportunities in the private sector, once the black money is invested in setting up industries and factories, said Raushon, senior co-chairman of the Jatiya Party. “There is no cash in the banks. Private sector is not getting credit from the banks. But the government has taken measures to finance the budget deficit by borrowing from the banks.”
Successive governments have offered opportunities for whitening black money under various schemes since independence, but the response has so far been lukewarm, according to analysts. The government is yet again giving scope to whiten black money, subject to investment for the nurturing of the industrial sector, according to the budget speech presented by Finance Minister AHM Mustafa Kamal in parliament on June 13.
He proposed an amendment to the income tax law in the budget for FY20 to pursue the cause. If a taxpayer pays income tax on investment in Economic Zone and High-Tech Parks, the investment will be accepted with no questions asked. No questions will be asked by the income tax department on the source of fund if the taxpayer pays 10 percent income tax on the investment, the budget proposes.