Govt may lower tax on legally earned undisclosed money

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FE Report
Finance Adviser Mirza Azizul Islam Wednesday stated that the government might consider lowering the rate of tax on legally-earned undisclosed money, asserting at the same time that it would under no circumstances give any scope for whitening of black money.
Addressing a seminar on Public-Private Partnership for Housing Development in Bangladesh at a city hotel, the finance adviser said a section of businessmen had requested the government to allow investment of black money in the housing sector, but the government would no more allow any such facility.
Admitting that the existing highest 500 per cent tax on the amount of money that is applied in case of detection of any undisclosed income is too high, he said noting that this usually frightens the people away from disclosing their money.
The finance adviser told the seminar that the government would consider reducing land registration fee in the upcoming budget while agreeing with the views expressed by the participants in the seminar that the existing land registration fees "are high".
Without elaborating the sources of legally earned undisclosed income, he hinted at sales of landed property as one of such sources. He, however, did not specify the areas where such money come from.
Mirza Aziz said that the government would not further allow the registration of unregistered apartments or flats without proper verification of documents and actual monetary transactions.
Speaking at the seminar, the real estate and housing businessmen urged the government to reduce the rate of interest on bank loans for housing projects.
But the finance adviser said reducing the lending rate is very difficult.
The businessmen also urged the government to reduce duties on the import of building materials like steel, cement, electrical and sanitary items, elevators and standby generators.
But the finance adviser said local industries would be affected if the duties on imports were reduced
In his introductory speech at the seminar Salim Akhter Khan, chairman and president of Asset Developments and Holdings Limited said: "The housing construction industry and the national efforts to provide shelter to all people is recognised in modern times by most governments, and the public, as more of an Economic and Financial Policy tool, than an activity taking under any other sphere of governance. As such, the fortunes of this sector in Bangladesh are more strongly tied to the ministries under the purview of the Hon'ble Adviser for Finance and Planning".
"The real estate industry of Bangladesh is only 25 years old, but it has tremendous potential. It has now annual turnover of Tk 125 billion employing about 1.5 million people," said Anwar Hossain, pro-vice chancellor of the American International University-Bangladesh (AIUB).
He said the housing sector plays an important role in the growth of economy.
AIUB and Asset Developments and Holdings Limited (ADHL) jointly organised the seminar.
R.T. Moudud, director of AIUB, F.R. Khan, managing director of Asset Development and Holding Limited, Ataur Rahman, department of political science of Dhaka University and Carmen Z Lamagna, vice chancellor of the AIUB also spoke on the occasion.
UNB adds: In his introductory speech, Salim Akhter Khan of ADHL rang the alarm bell by saying, "if the country's economy continues to be as it is, and per capita income does not rise or stays stable in real terms, we can be on the verge of famine in a matter of months, not years".
He said the government could tap the huge private funds and savings from both declared and undeclared but lawful incomes by offering tax incentives and rebates on investments in housing construction.
"This, of course, does not imply any form of support to income by illegal or corrupt means," Salim Akhter said.