REJAUL KARIM BYRON

The tax authority’s receipts from black money dropped 94.4 percent year-on-year in fiscal 2021-22 after the increase in tax rate and additional penalty dulled the black money holders’ interest to legalise their undisclosed wealth.

Last fiscal year, Tk 116.27 crore came in taxes and fines after 2,311 people legalised their undeclared wealth, according to the National Board of Revenue.

A year earlier, when the government had provided the scope to clean black money without any question asked regarding the source, a record Tk 2,064.9 crore was received by the NBR from 11,859 individuals.

The reason for the poor response is the increase in the tax rate and the imposition of penalties, said NBR officials on the condition of anonymity as they are not authorised to speak with the media.

In fiscal 2021-22, the tax for legalising undisclosed wealth by investing in the stock market, banks’ savings products or national savings certificate was 25 percent and there was another 5 percent penalty on the computed tax.

The tax was 10 percent in fiscal 2020-21 and there was no additional penalty.

Subsequently, in fiscal 2021-22, 51 individuals legalised their hidden wealth by investing in the stock market, down from 286 a year earlier. The NBR received Tk 3.31 crore from the option, down 91.8 percent year-on-year.

Some 2,251 people declared their bank savings products or national savings certificate and cash holdings, yielding the NBR Tk 112.87 crore last fiscal year.

In fiscal 2020-21, 11,573 individuals gave the NBR Tk 2,024.64 crore in taxes by legalising their bank savings products or national savings certificate and cash holdings.

Undisclosed wealth could also be legalised by setting up new industries last fiscal year and the tax for that is 10 percent tax. Only nine people took up on the offer, with the NBR receiving Tk 90 lakh.

The amount of tax to legalise undisclosed property, comprising houses, land, buildings or flats, stayed unchanged from fiscal 2020-21. That tax depends on the location of the property.

This fiscal year, the government has withdrawn the tax amnesty to black money at home, instead taking aim at wealth stashed abroad.