The opportunity to legalise undisclosed money with a 15 per cent tax, as proposed in the national budget for FY 2024-25, may discourage new taxpayers, since many taxpayers could opt for this advantage, seeing it as a cheaper option.
Moreover, the proposed measure is also likely to create inequalities among businesses entering the economy with varying tax rates.
Leaders of the International Business Forum of Bangladesh (IBFB) made this observation at a post-budget press conference at its office in the city's Tejgaon area on Tuesday.
They also emphasized the need for strict implementation of relevant laws to ensure the best outcome from the amnesty for undisclosed income, which has sparked debate since the budget was presented in parliament a week ago.
IBFB president Humayun Rashid chaired the press conference attended by the forum's Immediate past president Hafizur Rahman Khan, Vice President Lutfunnisa Saudia Khan, and IBFB adviser Dr Muhammad Abdul Mazid.
Responding to queries, Dr Abdul Mazid said the opportunity for a citizen to legalise undisclosed money is a universal practice, because such wealth might be accumulated due to different reasons.
"The idea of undisclosed money should have been made clearer in the (budget) speech," he said, adding that it might embarrass the regular taxpayers.
He also said that undisclosed money should be incorporated into the formal economy through proper legal process.
"However, the misuse of the amnesty might discourage potential new tax payers," he said.
Responding to another queries, IBFB President Humayun Rashid said the country's economy has been affected by different global factors, including Russia-Ukraine war, higher freight cost, and global supply chain disruption.
"The IBFB believes capacity building and skill development is essential to implement the national budget," he said.
Identifying corruption as a major challenge for the country, he said it seriously hampers the ease of doing business. The proposed budget is devoid of time-befitting reform guidelines, he added.
He also said good governance and proper monitoring are needed to deal with the challenges of budget implementation.
In its budget analysis, the IBFB said it is necessary to withdraw 1.0 per cent customs duty (CD) at the import level on the raw materials such as engine.
The IBFB also called for exemption of tax on completely built unit (CBU) electric vehicles until 2030 in order to promote the environment-friendly cars in the country.
saif.febd@gmail.com