New avenues for black money: economic zones, high-tech parks

The government has offered new avenues to whiten black money through investment in economic zones and high-tech parks while it leaves scope for dirty money in real estate unchanged in the new budget.

Finance Minister AHM Mustafa Kamal proposed an amendment to the income tax law under which investment into economic zones and high-tech parks will no longer be subjected to government scrutiny.

The ‘exemption’ will kick in when a taxpayer pays 10 percent income tax on such investments, according to the finance minister. 

The move aims to build on the tax exemption for income generated through the production of goods and services in these areas by boosting investment and creating jobs, said Kamal.

At present, the Income Tax Department does not look into the source of funds invested in the purchase or construction of any apartment or building, if the necessary taxes are paid on such investments, he said.

But the high tax rates on such investments are deterring taxpayers, according to Kamal.

“I propose decreasing the existing tax rates to encourage taxpayers to voluntarily disclose the purchase or construction of any apartment or flat, and building in their tax returns.”