Amnesty for black money: what are the proposed tax measures?

The government wants to re-introduce the provision allowing individuals and companies to whiten their black money without facing any question from any authority about the source of the wealth.

According to the new provision, a taxpayer needs to pay tax at fixed rates against investment in immovable properties such as flats and land.

In case of other assets, including cash and deposits in banks, a taxpayer will need to pay a 15 percent tax on the amount to legalise his/her income.

By re-launching the initiative, the government seeks to increase the flow of money into the economy, although such measures failed to yield any fruitful benefit in the past.

The unquestioned amnesty to black money will remain effective from July 1 this year to June 30 next year if the lawmakers approve the proposal placed by Finance Minister Abul Hassan Mahmood Ali on June 6 as part of tax measures for the next fiscal year.

But what are the provisions in his proposal?

By paying a 15 percent tax, one can invest his/her undeclared money in financial schemes and instruments, in the stock market or deposits in banks.

One can open savings accounts in banks or non-bank financial institutions.

The undeclared money can be invested on land, establishment, house, flat, apartment or floor in any area of the country.

It can also be invested in other assets with the payment of 15 percent tax on their market value.

How and where to invest the undeclared money capitalising on the opportunities given by the government?

Paying tax at a rate of Tk 6,000 per square metre, one can easily buy a space for establishment, house, flat or floor in Dhaka's Gulshan, Banani, Motijheel, Tejgaon, Dhanmondi, Wari, Tejgaon industrial area, Shahbag, Ramna, Paltan, Kafrul, Newmarket and Kalabagan.

One can buy land in these areas by paying tax at a rate of Tk 15,000 per square metre.

One can buy a space for establishment, house, apartment or floor in Dhaka's Bongshal, Mohammadpur, Suttrapur, Jatrabari, Uttara (Model), Cantonment, Chakbazar, Kotoyali, Lalbagh, Khilgaon, Shampur, Shahjahanpur, Mirpur (Model), Darus Salam, Dakkhinkhan, Uttarkhan, Turag, Shah Ali, Sabujbagh, Kadamtoli, Kamrangirchar, Hazaribagh, Demra, Adabor, Gandaria, Khilkhet, Bimanbandar, Uttara (Pacchim), Mugda, Rupnagar, Bhashantek, Badda, Pallabi, and Bhatara, Chattogram's Khulshi, Pachlaish, Pahartoli, Halishahar and Kotoyali thana, Narayanganj's Sadar thana, Sonargaon, Fatullah, Siddhirganj, and Bandar along with Gazipur's Sadar thana just paying tax at a rate of Tk 3,500 per square metre.

One can purchase land in these areas by paying tax at a rate of Tk 10,000 per square metre.

Paying tax at a rate of Tk 1,500 per square metre, one can buy space for establishment, house, flat, apartment or floor in Dhaka's Dohar, Nababganj, Keraniganj, Savar and Dhamrai, Chattogram's Akbar Shah, EPZ, Karnafuli, Chakbazar, Chandgau, Dobolmuring, Patenga, Bondor, Bakolia, Bayejit Bostami and Sadarghat along with Gazipur's Jaydevpur, Kaliganj, Bashon, Konabari, Gasa, Tongi (east), Tongi (west) and Narayanganj's Rupganj and Araihajar thana areas.

One can buy space for establishment, house, apartment or floor in all the areas of municipality in district sadar, other city corporations across the country along with other development authority areas by paying tax at a rate of Tk 1,000 per square metre and for land it would be Tk 2,000 per square metre.

Paying tax at a rate of Tk 850 per square metre, one can purchase space for establishment, house, flat, apartment or floor in any municipality area and land at a rate of Tk 1,000 per square metre.

According to the Bangladesh Economic Association, Bangladesh has a total of Tk 13,253,500 crore undeclared money.

From 1972 to 2022, a total of Tk 45,522 crore was whitened, from which the government received Tk 4,641 crore in taxes, according to the data of the National Board of Revenue.

In 2020-21 fiscal year alone, Tk 20,600 crore was legalised from which it received Tk 2,064 crore in taxes.