THE National Board of Revenue (NBR) chairman on Tuesday said people holding three categories of undisclosed assets such as cash, shares and bank deposits can declare it to the tax authorities by paying 10 percent additional tax. Any person or law enforcement agency will not be able to challenge the source of money in any court of law. He said none will raise question, NBR has eliminated the scope holding consultation with stake holding agencies. It said, rising question will be unjust.
The move has been mooted; the NBR chief said in view of the recent flow of more undisclosed fund to the stock market while the whitening opportunities offered earlier in the current budget failed to generate enough response. He justified the new rule not to challenge such whitening saying the Finance Act- 2020 has opened this scope. He however agreed that it may supersede the anti-graft law but equally defended it saying this law also has been passed by Parliament.
As it appears the nation is appalled time and again by allowing such whitening of undisclosed or illegal money for a section of wealthy people amassing huge unaccounted wealth. But the amount of money it was able to bring to the mainstream economy every year was very small and yet it continues apparently on benefiting few. The regularization of such funds has been announced this time almost two months after the announcement of this year’s budget.
We have a government totally lacking transparency and accountability while sheltering stealing of banks and public funds from every possible source. Most people believe such facility work as a cover to capital flights, money laundering and such other financial crimes. If it is not producing enough benefits why the government is extending all support to grabbers of illegal wealth breaking existing anti-graft law.
Most significantly, it seems to be quite immoral and unjustified to treat honest tax payers with cheats and frauds. In our view a corrupt government can’t enact any law at will which contradict good practice in financial system and also flout constitutional obligation to fight crime.
