MEDIA report published in a national daily on Wednesday said the opportunity to whiten black money helps a section of political leaders in election financing, but it is always counterproductive to the national economy dodging taxes and leaving revenue collection below what it should be. That means tax-GDP fall and cannot boost economic growth. Economists and businesses leaders in a webinar decried the practice of allowing the provision in every budget saying it not only discriminates against honest taxpayers but also causes overheating in the real economy promoting financial crimes.
They have rightly suggested discontinuation of whitening black money from the next budget to ensure fiscal justice as well as denial of safe heaven to money launderers who are trafficking money abroad instead of investing in local economy. Economies in other countries are benefiting from such funds while its investment within the country could create thousands of jobs and expand industrialization and exports.
Reports have said a total of Taka 102 billion was whitened in first six months of current fiscal year (July-December) and the government received Taka 9.50 billion as tax. But it seems to be a fraction of the total money held out of the formal economy and playing in the hands of crime gangs. The fact is that if the government is totally corrupt and leaders partly hoard black money or shelter such unaccounted for money with the annual opportunity of whitening, this system will never change. We need change of the outlook and enforcement of law to end accumulation of black money.
It is shocking that though black money is illegal, whitening is not illegal. It means our government offers the exit without holding one accountable for illegally holding black money and misusing it in wide range of crimes including running underworld crimes or funding elections. Most political parties control black money, leaders use black money to wipe out rivals, bribe party leaders for nomination, the police and local administration to win election. So black money is not ending while the government is remaining without enough revenue for development funding. Our bureaucracy is corrupt, the system is inapt and oversight is ineffective. Speakers have raised the vital issue but we need a change of corrupt political system to end the domination of black money.
