Al Amin :
The National Board of Revenue (NBR) has clarified the way of investing the undisclosed income (black money) in capital market and real estate sectors.
Stock investors have to pay 10 per cent tax within 30 days of investment, NBR said in a circular issued on Monday.
It also said the taxpayers have to pay regular tax before filing the return and it must be within the current fiscal year to get the opportunity to invest undisclosed money in the housing sector.
Undisclosed money will not be allowed to be invested without question if there is a tax evasion complaint against the taxpayer or any other financial proceedings under any other law, the circular added.
The highest tax rate will be applied on purchasing buildings and apartments at Gulshan Model Town, Banani, Baridhara, Motijheel Commercial Area, and Dilkusha Commercial Area of Dhaka city. For purchasing residential flat or building, the taxpayers have to pay Tk 1600 tax for per square mitre.
In Dhanmondi residential area, Mohakhali DOHS, Lalmatia Housing area, Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment, Karwan Bazar, Bijojnagar, Nikunja in Dhaka and Khulsi, Agrabad, Panchlaish, Nasirabad in Chattogram, the taxpayers have to pay Tk 1400 tax for the same space. Besides, the taxpayers have to pay Tk 1000 tax in outside of the mentioned areas in Dhaka North and South and Chattogram City Corporation areas, Tk 700 tax in other city corporation areas and Tk 300 in other areas of the country.
On the other hand, for purchasing commercial space, Tk 6500 per square metres in Gulshan Model Town, Banani, Baridhara, Motijheel Commercial Area, and Dilkusha Commercial Area of Dhaka city and Tk 3500 in Dhanmondi residential area, Mohakhali DOHS, Lalmatia Housing area, Uttara Model Town, Bashundhara Residential Area, Dhaka Cantonment, Karwan Bazar, Bijojnagar, Nikunja in Dhaka and Khulsi, Agrabad, Panchlaish, Nasirabad in Chattogram have to be paid.
In FY 2018-19, some 85 people availed the black money whitening opportunity legalising a minuscule Tk 1.26 billion with Tk 130 million taxes. In 2017-18, some 90 people took the facility, almost double the number in FY 2016-17.
People having undisclosed cash got the chance to legalise their money in three methods while filing return during the current fiscal year.
The taxmen allowed the relevant taxpayers to show their undisclosed amount as ‘cash in hand,’ ‘cash at bank’ and ‘cash as working capital’ and legalise the same by paying tax at a flat rate of 10 per cent. The income tax wing under the NBR has recently worked out the three different processes in which untaxed money can be legalised. The government, for the first time, offered the opportunity for people to legalise their undeclared cash without any question.
In the budget for current fiscal year, the government also offered amnesty for whitening black money by investing in the capital market. Economists have apprehended about any significant outcome of such an opportunity.
Dr Zahid Hussain, former lead economist of World Bank in Dhaka, said time-bound opportunity with penalty may help channelise black money into formal economy.
The continuation of such facility every year prompts people to adopt wait-and-see approach, he argued.
Dr Ahsan H Mansur, Executive Director of Policy Research Institute (PRI), said it is “unjust” as people are paying up to 39 per cent tax for legally-earned income while the rate is 10 per cent for the ill-gotten money.
Such a fiscal measure may discourage the genuine taxpayers from paying taxes, he said.
