CPD suggests law to tax black money

The Centre for Policy Dialogue has suggested a law to bring undisclosed or black money under the tax net to increase revenue.

The private think-tank’s Distinguished Fellow Debapriya Bhattacharya made the suggestion at a function titled “Bangladesh Economy in 2014-15: Third Interim Review” held at the CIRDAP auditorium in Dhaka on Monday.

He said untaxed money needed to be brought under the mainstream tax net for an increase in revenue.

“That’s why a dependable mid-term policy is needed on undisclosed money, earned locally or from abroad.

“For that, a law to deal with dubious property can be formulated. Many countries have such a law,” he added.

A section of Bangladesh Income Tax Ordinance provides for legalising money not disclosed in tax returns by paying tax at regular rates with a 10 percent fine.

CPD Research Fellow Toufiqul Islam Khan was the key speaker at the event.

Executive Director Prof Mustafizur Rahman and researchers Khondaker Golam Moazzem and Anisatul Fatema Yousuf were present.

Dr Bhattacharya made several suggestions aimed at securing the maximum benefit from the agreements to be signed with India during Prime Minister Narendra Modi’s upcoming visit to Dhaka.

He said: “The motor vehicle agreement will be signed. Infrastructure has to be developed to benefit from it.

“We’ve heard that an inland water transit and trade agreement will be signed. Development of infrastructure is needed for that too.”

“What is needed more is to make it clear the benefit when Indian goods are transhipped through Bangladesh or when Indian goods will go to (another part of) India via Bangladesh.”

ssr/ag/bd