GRANTING amnesty to ‘black money’ is not a new practice in our economy ?? it has existed since 1972. The government, usually before presenting the annual budget, seeks the option of making excuses to legalise the illegal money and induct it into the economy. To facilitate legalizing the black money, the government then uses its organs to make a campaign in favour of allowing whitening of ‘black money’. A report carried in a national English daily on Wednesday said, Chairman of the National Board of Revenue favours the provision of legalizing undisclosed or black money on the grounds that it might arrest the rampant capital flight from the country. We are doubtful how such an option of legalizing the illicit earnings can prevent the escape of money to foreign countries while many legal or illegal channels are active to support the outflows of money to abroad. Besides, the black money holders are of questionable patriotism, most of them being politicians, businessmen and bureaucrats, are always apparently ready to leave the country to their second home at available opportunities. So, whatever they earn legally or illegally, their tendency is to send money to their second home. So whitening black money cannot be an effective option to prevent the illegal money flow to abroad. Rather, it will encourage those dishonest individuals to earn more through illegitimate ways as they can have the opportunity of whitening them without any penalty. We share the concern of the experts that in any perspective considering social integrity, economic justification and political culture, legalizing the illegal earnings can only create anarchy in the economy and it also weakens the backbone of our social fabrics. According to available data, the size of the underground economy, the nursing ground of black money, consists of around 50 percent of a country’s total GDP. Between fiscal 1971-72 and fiscal 2012-13, some Tk 13,808 crore was whitened, with the NBR receiving taxes of Tk 1,455 crore during this 43-year period, which is just around 1 percent of this year’s revenue target, the report informed. By all counts, the amount so added to the exchequer is too insignificant. Thus, the option for legalizing the black money has already been proved ineffective to the economy. On the other count, it has not augmented the investment flow to the economy -whether of the formal or informal sector, whatsoever. The black money is earned by tax evasion, bribe taking, rent seeking and/or kickbacks. Thus a marriage of convenience among the politics, bureaucracy and businesses is involved in evading the taxes. If they are always favoured to do so, why the ordinary masses should pay tax then? Basically, allowing open amnesty to black money in the ensuing budget is an attempt to help the leaders and workers of the ruling party and the government functionaries who have amassed huge illegal wealth and are now seeking safe passage to drain that out of the country for safety and security.We ask the government to take steps to clean the ruling party leaders along with dishonest businesses and public servants who are similarly avoiding declaration of their wealth and avoiding taxes. The issue of black money is easy to talk but difficult to deal with. Black money is going out that is also not good.
