MP Suhrab feels 15% tax to whiten black money is ‘too high’

He says the rate should be 5 percent to encourage more people to show their undisclosed income

Md Suhrab Uddin, an Awami League leader and independent MP from Kishoreganj-2, has demanded lowering the 15 percent tax for legalising undisclosed income without facing questions.

Suhrab does not agree to call it an option to launder dirty money and argues that the lower the tax on such income, the greater the possibility to legalise the funds.

Suhrab, convenor of Pakundia Upazila Awami League, discussed the issue in parliament on Sunday after Finance Minister AH Mahmood Ali reintroduced the provision in his proposed budget last week.

Economists and anti-corruption activists have decried the option, saying it will encourage corruption, and discourage the general public from paying up to 30 percent tax on their legal income.

But Suhrab said money is being smuggled out of the country, fuelling the dollar crisis, and this will not stop if there is no option to disclose previously undeclared income. “Actually it’s not whitening black money, but an option to show undisclosed income. There’s no problem even if the tax is 5 percent in this case. The lower the tax, the more undisclosed income will be disclosed,” he said.

“The 15 percent tax is too high. Many won’t show their undisclosed income at this tax rate. If the rate is lowered, the state’s revenue and investment opportunities will increase.”

“More options can be added here. No questions can be asked in case of land or machinery purchase,” Suhrab said.