NBR yet to get response from ‘undisclosed’ money holders

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Shakhawat Hossain
The National Board of Revenue (NBR) is yet to get any response from anyone seeking to avail the facilities under an incentive for declaration of undisclosed income by payment of tax at a certain rate, although 10 days have passed, official sources said.

The NBR set the period between June 05 and July 31 for legalisation of undisclosed income by paying 5.0 per cent in addition to normal rate of tax.
"Until today, we have not found any undisclosed and untaxed money holder taking the advantage of the special incentive," NBR income tax policy member Ali Ahmed told the FE Thursday.
But, many people have already inquired about the incentives and various other legal aspects in a demonstration of inclination towards availing themselves of the offer, he added.
It seems, the income tax policy member pointed out, that the timing of the validity of the offer, which covers a period of two fiscals, is a factor.
He, however, expressed the hope that many people would avail themselves of the opportunity in July, the first month of the next fiscal.
But commissioners of the different zones under the income tax department, who have been assigned to deal with the matter, expressed differing views.
"The NBR may not get expected response because of the tricky aspect of the incentive offer," said a commissioner on condition of anonymity.
The NBR Statuary Regularity Order (SRO) in this regard stated that anyone who had failed to disclose certain part of his/ her income made through fair means in the tax return in a particular year would be allowed to legalise the same through the payment of 5.0 per cent tax in addition to the total amount of tax that was due for that year.
Thus, the opportunity will not be applicable in case of income made through illegal means, the commissioner said.
"There is lot of confusion among the holders of undisclosed money about the offer. They, probably, want softer conditions," the commissioner added.
Providing opportunities to whiten black money is nothing new in the country. The provision was made six times in the past 36 years, lasting for a total of eight years. About Tk 51.95 billion was brought into the formal economy during the period.
The money-whitening scheme was first introduced in fiscal 1975-76 when only Tk 700 million was legalised.
During fiscal 1987-88, Tk 2.0 billion was injected into the formal economy. An amount of Tk 2.5 billion was declared under the facility in the next fiscal year. In 1989-90 fiscal, the amount of money was Tk 4.0 billion.
The incentive was reintroduced again in 2000-01 fiscal that saw legalisation of Tk 10 billion and Tk 17.75 billion in fiscal 2002-03.
An amount of Tk 15 billion was disclosed in fiscal 2004-05, the year that saw an end to such incentive.