REPORTS say the upcoming budget for 2021-22 is likely to offer the scope of whitening black money in continuation of such practice over the years breaking budgetary discipline. It has become a regular phenomenon to help legalise illegal or unreported income of wealthy people by budget declaration. Such black money is largely acquired by dishonest people in government and business through corruption and money laundering.
We have always said this is a financial crime and unethical practice as many people hold such money in unreported investment and bank vault. The whitening of black money paying a 10 per cent tax is just scandalous and highly discriminatory with regular tax payers. We also know it also widens income gap in the society rewarding money launderers. The provision for not questioning the source of such money in fact allows hiding of big financial crimes such as stealing banks or misappropriation of government funds by people holding such unreported fund. A former NBR chairman told the New Nation on Friday that legalizing black money is just a protection to black money to become white at a convenient time and the system must be reviewed and stopped.
We don’t understand why the government is continuing the scandalous practice in every budget arguing that such whitening may allow unreported income or investment to enter mainstream economy and protect the same from capital flight. Experience however shows only a small amount of black money is being whitened every year and yet why every finance minister keeps the door open breaking budgetary discipline is a big question. In our view most big businesses or bureaucrats don’t report their entire annual income and hold bigger part of it secret in absence of conducive investment environment. Some others just don’t want to disclose the source of huge money in their hand for fear of crime behind the money. They buy real estate or make such other investment abroad.
We know that this government is largely run by businessmen and political opportunists who make huge unaccounted for fortune from bribes and business contracts. Their lobby is very strong influencing important decisions. It was similarly true during the previous governments. So black money and white money are one and the same at some point no matter what people say about it. But we need to come out of this vicious circle.
