Finance Minister proposes to legalize smuggled money...

Finance Minister proposes to legalize smuggled money

 Staff Correspondent daily-bangladesh.com

 Published: 03:57 PM, 9 June 2022   Updated: 08:31 PM, 9 June 2022

Finance Minister AHM Mustafa Kamal; File Photo

Finance Minister AHM Mustafa Kamal; File Photo

Finance Minister AHM Mustafa Kamal has started presenting the proposed budget for the next fiscal year in the Jatiya Sangsad. In the budget, he proposed to legalize the money smuggled from the country in various ways.

“Once the money is legalized through tax, any authority including the income tax authority will not be able to question its legitimacy,” Finance Minister said in the budget.

In his budget speech, the Finance Minister further said “the global economic downturn is being predicted” due to the “global coronavirus outbreak” and “ongoing instability”. In this situation, we may have to face a “difficult situation” in the next fiscal year. 

In this context, more prudent and far-sighted approaches need to be taken in formulating and implementing monetary policy. In order to keep the wheel of the economy moving, we need to provide more revenue to meet government expenditure on the one hand and bring dynamism to economic activities in the private sector on the other hand, Finance Minister also said.

In such a situation, AHM Mustafa Kamal proposed to add “new provisions” in the Income Tax Ordinance to increase investment and financial flow by bringing money and assets earned abroad into the mainstream of the economy.

Regarding the new provision, the Finance Minister said as per the proposed provision, if any tax is paid on any property located abroad, no authority including the income tax authority will raise any question in this regard. 

He proposed a tax of 15 percent on immovable property acquired abroad, 10 percent on an immovable property abroad and 10 percent on remittance cash sent to Bangladesh. This facility will be valid from July 1, 2022, to June 30, 2023.

The Finance Minister said if the proposed provision is implemented, the inflow of foreign exchange into the mainstream of the economy will increase and income tax revenue collection will increase; And the taxpayers will also be relieved to have the opportunity to display the money and assets earned abroad in their income tax returns.

If the Finance Minister’s proposal is approved, the smuggled money will return to the country and that money will merge into the mainstream of the economy. He said that “the wheel of the economy would be moved by overcoming the crisis.”

DailyBangladesh/AS