Laundered money to be legalized by 7-15 pc tax in FY23 budget

The government has introduced a policy of legalizing laundered cash and assets without facing any questions for a year starting from next July 01.

Finance Minister AHM Mustafa Kamal in his budget speech said Covid-19 pandemic and the ongoing unstable condition in certain parts of the world forebode a recession in the global economy, reports UNB.

“Under the circumstances, we might have to face tough challenges in the coming fiscal year. As such, we have to be more prudent and visionary in adopting and implementing fiscal policy,” he said.

He said, “To keep the economy going, we have to arrange for more revenue for the government expenses on one hand, and also have to make the economic activities in the private sector more vibrant and dynamic on the other”.

This is why he said he proposed to add a new provision in the Income Tax Ordinance, 1984 so that money earned and assets acquired abroad can be mainstreamed into the economy with a view to creating a flow of fresh funds and investment for economic activities.

According to the proposed provision, no authority, including the income tax authority, shall raise any question as to the source of any asset located abroad if a taxpayer pays tax on such asset.

The proposed rate is 15 per cent for immovable property not repatriated to Bangladesh, 10 per cent for movable property not repatriated to Bangladesh and 7 per cent for cash and cash equivalents repatriated to Bangladesh.

This opportunity will be in force for the period starting from the first day of July 2022 and ending on the thirtieth day of June 2023, Kamal said in the speech.

The minister hoped that this provision will increase the flow of foreign currency to the economy, increase income tax revenue, and the taxpayers will also feel relieved by availing this opportunity to declare their assets and money acquired/earned abroad in their respective income tax returns.