Legalising black money

There are no really reliable statistics related to the total sum or even an estimate of black money that churns around in the economy. Year after year, mainly on demand of business sectors, the government has provided incentives for whitening these through payment of a flat tax and investing the same in sectors such as the real estate sector. The revenue earnings have been meagre and the real estate business continues to complain that they have thousands of unsold apartments inspite of the move. Ideally it should have worked, given there's a 'no questions asked' caveat to such investments. But ideal is often far removed from the actual.

Firstly there's too much black money out there invested in all imaginable sectors from sports to business that are never asked about. The Bangladesh Premier League is a money-spinning venture where returns are little and payouts are big. Foreign players are paid in foreign currency and it is doubtful whether they pay the taxes prevailing. But questions are not asked because it draws in spin-off business from merchandising to catering. And while there is reluctance on part of investors in putting money into business, there are many willing to play the jackpot called the share market that never functions as per the fundamentals of a proper stock market. And through the mini crashes and protests the market limps on.

Supporting businesses for mega projects is another area where black money is involved. Investors find this more attractive, at least the fortunate few that can participate. The contractors and suppliers are reaping the benefits of investing in these projects but little is heard of any of them making the top list of income tax payers among businesses. On the contrary, those who make up the top listings hardly ever have their voice heard or interviews taken as to how good business can survive in a proper tax environment.

In that ideal world supply and contractorial services for mega projects should be listed and their taxation made public to do away with the misgivings of doubt. Far from that, the project expenses continue to bloat partly resulting in the Tk 152 billion supplementary budget that was approved by the parliament. That is after a significant cutting of the Annual Development Fund in the soon to end current year budget. That comes from the ever ambitious revenue target not being met and just as ambitious projects never quite reaching implementation. Most of the blame is put on the unimplementable projects with foreign aid component. One side of the argument is procedural delay; the other is simple transparency. Somehow no one is even thinking of even partly inviting black money for Public Private Partnership. Or it could be there's just no faith in the process.

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