WB economist against black money whitening
Dhaka, June 3 (UNB) – The government should not keep any provision in the next budget for whitening black money as it will ultimately encourage the generation of such illegal money, World Bank senior economist Dr Zahid Hussain said on Sunday.
“We don’t know what scheme is coming exactly to whiten black money. But there shouldn’t be any scheme that will ultimately encourage black money generation,” he told reporters at a media briefing on Bangladesh Economic Update at Hotel Westin in the city.
He said ideological aspects and reality will have to be considered in providing any scope to whiten black money.
“The ultimate impact of the black money will also have to be considered,” the economist said when his attention was drawn to media reports that claimed that the government would allow whitening black money with nominal penalty.
According to the sources at the National Board of Revenue (NBR), the government might allow whitening black money with a fine in addition to normal taxes in the next fiscal year.
Currently, people pay a flat tax of usually 10 percent to get amnesty for black money which will reportedly be changed except in case of stock market and infrastructure bonds.
According to the NBR sources, one will have to pay normal taxes and a fine between 5 and 10 percent for legalising the undisclosed money.
The government is reportedly under pressure from some influential quarters to give scope for legalising black money or income gained illegally.
On April 22, Executive Director of Transparency International Bangladesh (TIB) Iftekharuzzaman said providing the opportunity to whiten black money in national budget is unconstitutional, immoral and discriminatory.
The TIB executive director said the Article 20 (2) of the country’s constitution strongly stands against the illegal income. The government in its election manifesto in 2008 too stood against the illegal income and black money.
Meanwhile, Centre for Policy Dialogue (CPD), a civil society think tank, proposed additional tax as penalty along with regular tax rate, if the government wants to allow whitening of undisclosed income in the next budget.
The BNP-led governments from 1991 to 1996 and from 2001 to 2006 also legalised black money.
On April 22, Finance Minister AMA Muhith at a function said, “I don’t know what will happen this year.
As the Asia Pacific Group on Money Laundering, a global anti-money laundering body, strongly opposes giving scope for whitening illegal money, the government is now weighing how to give amnesty for black money without disregarding its international obligations, sources said.
World Bank Country Director Ellen Goldstein, WB Lead Country economist Dr Sanjay Kathuria, senior economist Dr Zahid Hussain, Sector Director, Poverty Reduction and Economic Management, South Asia Region Dr Ernesto May and Communications Officer Mehrin A Mahbub were also present.
“We don’t know what scheme is coming exactly to whiten black money. But there shouldn’t be any scheme that will ultimately encourage black money generation,” he told reporters at a media briefing on Bangladesh Economic Update at Hotel Westin in the city.
He said ideological aspects and reality will have to be considered in providing any scope to whiten black money.
“The ultimate impact of the black money will also have to be considered,” the economist said when his attention was drawn to media reports that claimed that the government would allow whitening black money with nominal penalty.
According to the sources at the National Board of Revenue (NBR), the government might allow whitening black money with a fine in addition to normal taxes in the next fiscal year.
Currently, people pay a flat tax of usually 10 percent to get amnesty for black money which will reportedly be changed except in case of stock market and infrastructure bonds.
According to the NBR sources, one will have to pay normal taxes and a fine between 5 and 10 percent for legalising the undisclosed money.
The government is reportedly under pressure from some influential quarters to give scope for legalising black money or income gained illegally.
On April 22, Executive Director of Transparency International Bangladesh (TIB) Iftekharuzzaman said providing the opportunity to whiten black money in national budget is unconstitutional, immoral and discriminatory.
The TIB executive director said the Article 20 (2) of the country’s constitution strongly stands against the illegal income. The government in its election manifesto in 2008 too stood against the illegal income and black money.
Meanwhile, Centre for Policy Dialogue (CPD), a civil society think tank, proposed additional tax as penalty along with regular tax rate, if the government wants to allow whitening of undisclosed income in the next budget.
The BNP-led governments from 1991 to 1996 and from 2001 to 2006 also legalised black money.
On April 22, Finance Minister AMA Muhith at a function said, “I don’t know what will happen this year.
As the Asia Pacific Group on Money Laundering, a global anti-money laundering body, strongly opposes giving scope for whitening illegal money, the government is now weighing how to give amnesty for black money without disregarding its international obligations, sources said.
World Bank Country Director Ellen Goldstein, WB Lead Country economist Dr Sanjay Kathuria, senior economist Dr Zahid Hussain, Sector Director, Poverty Reduction and Economic Management, South Asia Region Dr Ernesto May and Communications Officer Mehrin A Mahbub were also present.
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