Former World Bank Dhaka office chief economist Zahid Hussain on Thursday demanded cancellation of the provision for disclosing undisclosed money by paying 15 per cent tax without facing any questions about the sources of income for the current FY25.
He made the demand to finance and planning adviser Salehuddin Ahmed in a Facebook post.
The interim government should replace the current provision by a new one under which the errant taxpayers will pay extra 5 to 10 per cent income tax on the usual rate to legalise the undisclosed income, he said.
Zahid Hussain added that the validity of the proposed new provision might be given for minimum three months and maximum six months.
On June 6, former finance minister Abul Hassan Mahmood Ali while announcing the budget for FY25 in Jatiya Sangsad incorporated the controversial provision.
Under the provision, the taxpayers in Bangladesh, including companies and firms, can legalise their undeclared wealth by paying a 15 per cent tax on immovable properties without facing any questions about the sources of their income.
The existing provision has been introduced despite criticisms that allowing legalising undisclosed money at a 15 per cent tax would discourage honest taxpayers who will have to pay highest 25 per cent tax.
Earlier, Transparency International Bangladesh called the provision illegal, discriminatory and unconstitutional.
The opportunity to legalise undisclosed money with just a 15 per cent tax will encourage generation of undisclosed money and evasion of tax.
The country鈥檚 tax鈥揋DP ratio is one of the lowest ones in the world because of widespread tax evasion, tax breaks and corruption of the taxmen.
