Tk 130 billion in undeclared income has been legalised since independence, says Muhith

Tk 130 billion in undeclared income has been legalised since independence, said Finance Minister AMA Muhith.

The government has received Tk 14.54 billion in taxes by legalising the undeclared income, he told MP M Abdul Latif in parliament.

The minister also presented a list to parliament showing how much money had been legalised during different regimes since Bangladesh became independent.

The document, however, showed that total of approximately Tk 143 billion in undisclosed income had been legalised:

>>1972-75 (Awami League government): Tk 24.5 million 

>>1976-81 (Ziaur Rahman regime and BNP government): Tk 507.6 million 

>>1982-90 (HM Ershad regime and Jatiyo Party government): Tk 458.9 million 

>>1991-96 (Khaleda Zia BNP government): Tk 1.50 billion 

>>1997-2000 (Sheikh Hasina Awami League government): Tk 9.5 billion 

>>2001-06 (Khaleda Zia BNP-Jamaat Alliance government): Tk 8.28 billion

>>2007-08 (Military backed caretaker government): Tk 96.82 billion 

>>2009-13 (AL-led Great Alliance government): Tk 18.05 billion 

>>2014- (Awami League government): Tk 8.563 billion

According to the Income Tax Ordinance, undisclosed income can be legalised by paying an additional 10 percent in taxes.

Economic analysts have consistently criticised the law, saying it discourages honest taxpayers, but the provision has remained as a part of the budget.

The 2017-18 budget allows three ways of legalising undisclosed income: investing in real estate, investing in the Bangladesh Infrastructure Development Fund and voluntarily paying an additional penalty on the undisclosed income.

According to the current income tax law private kindergartens and KG schools and madrassas are being taxed like other taxable institutions, the AMA Muhith.

Regular surveys are being carried out to bring those kindergartens with taxable incomes under the purview of the tax law, he added.