Its emphasise income declared under this provision must be from legal sources
Published : 24 Jun 2024, 02:48 AM
In a series of discussions on the possibility of legitimising black money, the Federation of Bangladesh Chambers of Commerce and Industry, or, FBCCI, has recommended the controversial amnesty be extended exclusively to organisations, not individuals.
The apex business body emphasised that income declared under this provision must come from legal sources.
During two meetings with Finance Minister Abul Hassan Mahmood Ali, the FBCCI put forward several demands, including revisions to the budget proposal for the fiscal year 2024-25.
On Saturday, FBCCI President Mahbubul Alam submitted 12 new proposals to the finance minister, including the contentious issue of black money whitening. These proposals follow earlier recommendations on the proposed budget on Jun 15.
Explaining the rationale behind the proposal, FBCCI President Alam told bdnews24.com: "There is a significant amount of money in our informal economy. We have proposed to limit this privilege to institutions to ensure these funds enter the formal economy, thereby expanding the government's tax net."
The current budget allows legalising investments, including black money, undisclosed assets, land, flats, and shares by paying a 15 percent tax, leading to criticism.
National Board of Revenue or NBR Chairman Abu Hena Md Rahmatul Muneem said: "The facility to whiten black money has been introduced due to demands from businessmen. We had information that some traders could not disclose all their assets due to audit-related issues. Hence, we made this proposal. Now, the matter will be discussed in parliament, and parliamentarians will decide on it."
FBCCI President Alam said: "If questions are raised, traders will not be encouraged to declare undisclosed income. This special policy should incentivize them to join the formal economy, enabling the government to collect taxes from this wealth in the usual manner from the next fiscal year."
This provision will protect the transparency and fairness of the tax policy and ensure equal opportunities for all tax-paying organisations and individuals, Alam said in the FBCCI's letter.
Fahmida Khatun, the executive director of the Centre for Policy Dialogue, or CPD, told bdnews24.com: "Limiting this opportunity to organisations and not individual taxpayers is discriminatory. Most business owners report income through companies, not individual tax returns, leading to further discrimination. Our stance is that no one should have this opportunity."
Khatun added that the current law does not allow questioning the source of income, making it difficult to distinguish between legal and illegal income.
“If clarified by law, the opportunity to declare undisclosed income should be equally available to all, both individuals and institutions.”
In the fiscal year 2020-2021, the government had previously allowed the legalisation of undisclosed income with a 10 percent tax which was conditional. After a four-year pause, the controversial provision found its way back in the budget.