Reprieve on black money

Ever since the minister put the proposal for extending amnesty to unearned and undeclared income holders for another year on the table, there has been an avalanche of negative reaction to the move from all quarters. From economic experts and planners through chamber and industry body leaders to his own party men, there raged a relentless stridency across the board. All of this tended to breed an expectation in the public mind that maybe the idea would be dropped, or at least the tax rate at a pampering 7.5 per cent will be raised so as to stop short of a complete sell-out to the deviant.

The very fact that no questions will be asked on the sources of unearned incomes if made public, is itself a huge favour proposed to be done to the corrupt and delinquent money merchants. Those who are genuinely interested in surfacing overland for their own good from the dark underworld would have grabbed the amnesty opportunity with both hands; they wouldn't even link it to concessionary interest rate. The opportunity itself is a bonus.

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The point is that those who feel they have a stake in coming out clean would do it anyway, regardless of the rate of interest.

This is a case of reverse discrimination against honest income tax payers who have to pay at a flat 10 per cent rate, to say nothing of corporate taxes ranging from 22-40 per cent for the conscientious and law-abiding business houses. Why should we reward illegal incomes?

The proposed amnesty to black money-holders is an open admission of failure to stem the tide of corruption and an abdication of responsibility on the part of government for maintaining transparency and accountability in economic management. But to top it off with a concessionary rate of interest makes it all the more assailable, untenable, and ultimately self-defeating.

Let us not forget that in the three years preceding January last, Tk 1800 crore worth of black money got whitened as against a conservatively estimated whopping Tk 50, 000 to 60,000 crore which awaits mopping up.