Scope to whiten black money

Finance Minister AMA Muhith told the Jatiya Sangsad on Saturday that undisclosed income or ‘black money’ could be invested in real estate by paying a ‘certain amount’ of tax per square metre of property bought. He, however, did not elaborate the rate of the tax. Muhith, who had been against such provisions for whitening black money, despite many economists suggesting provisions to allow investment of black money in infrastructure, said this in his concluding speech on the budget for fiscal year 2014-2015 on Saturday. In a post budget media conference on June 6, the minister said there was no provision for legalising ‘black money’ in any sector in the proposed FY15 budget. A day later, a section of economists suggested using black money in infrastructure but under ‘strict’ monitoring and after observing tight conditions. The National Board of Revenue chief Ghulam Hussain, too, pitched for ‘special investment opportunity’ for undisclosed income to keep it in Bangladesh. During his speech today the finance minister announced to cut tax, duties and Value Added Tax (VAT) from a number of products and items, including drugs, sales of flats/buildings, hybrid motor vehicles, blister foil, billet, pin and stab, ink manufacturing, LPG cylinders, hand-made biscuits and cake. He also announced to increase tax, duties and Value Added Tax (VAT) for some items including import of tires and MS rods. He also announced to withdraw VAT on some life-saving drugs used for treating cancer, kidney dialysis, vaccines for human, vaccines for veterinary insulin and herbal products. Terming his budget proposal as a roadmap of development and progress for the next five years, Muhith told the House with confidence that the proper implementation of the budget would expedite the pace of development and growth in building a happy, peaceful and prosperous Bangladesh. ‘Like previous budgets, our proposed budget for FY15 has been termed as ambitious, unrealistic but I believe that the favourable global situation and our national reality along with our coordinated efforts would defuse all doubts about the proposed budget and we will be able to reach our expected target this time also,’ he said. On achieving 7.3 per cent growth Muhith said private investment will go up because a stable political situation is prevailing in the country. Besides, net exports and remittance are expected to rise because of steady recovery in global economy, according to BSS.