The National Board Revenue (NBR) issued a circular to that effect yesterday. The provision taking effect today will not impose any punishment but a fine. It states that a taxpayer would have to pay in penalty five percent of the total amount to be whitened in addition to the tax at regular rates.

"We are offering the opportunity for a certain period on suggestions of different organisations and trade bodies," NBR Chairman Badiur Rahman told reporters at his office yesterday evening.

He defended the decision saying that it would yield some positive results for the economy.

The circular says the facility will not be applicable to ill-gained money. Besides, the people who stand accused or convicted of tax evasion and those who might be charged with similar offence in a future probe by concerned authorities will not be allowed to legalise their money under this provision.

The NBR, the central authority for tax administration, outlined two types of taxpayers who will benefit from the two-month provision. The ones with taxpayer identification number (TIN) will be able to whiten legally earned undisclosed [in tax returns] money of the last six years including the current tax year.

Another option says those without TIN will legalise their income from the year they came under the tax net. "In this case, one will have to secure his/her TIN first," said a source.

The last opportunity for whitening black money was given by the BNP-led coalition government during the fiscal year 2005-06. That year's budget allowed an unconditional whitening of money by paying 7.5 percent tax. The provision caused a huge uproar in different sections of the society.

The facility for whitening undisclosed wealth was offered five times between 1987 and 1990, and then from 2000 to the fiscal 04-05.

During FY 02-05, the BNP government introduced a system under which the black money holders could freely legalise their money on condition that they would invest it in production or services or purchase shares.

The first chance for whitening money was given in 1976 against a payment of 25 percent tax by the martial law government of Ziaur Rahman. Later, HM Ershad, also heading a martial law government, offered similar advantage for the tax evaders. But there is no record yet of the amount of black money whitened during that period.