Black money blips red alert

Whatever may be the uncelebrated reason for a slightly improved black money whitening activity, the bottom line is extremely material here: only Tk 1,390 crore has been whitened in the outgoing fiscal whereas by a rough estimate of the Bangladesh Economic Association general secretary Abul Barakat, the black money accumulation could be in the neighbourhood of 175 thousand crore taka. Such money is suspected to be equal to half of the total GDP of the country.

We are always opposed to the whole business of whitening money. This is nothing but encouraging corruption, fuelling acquisition of more black money and punishing the honest businessmen and good tax-payers. What incentive is there for sincere businessmen and other professionals to pay income tax to the tune of 10 to 25 percent when recalcitrant money holders, after years of dark and dubious possessions, are legitimised by merely paying 7.5 percent on their tax-evaded incomes. This is highly immoral. It is also patently ineffective, at least that is how it has unassailably proven itself to be. The government's expectation that after each no-questions-asked-opportunity given to dark characters they will form a long queue to emerge into the white has invariably been belied year after year.

Tap here to add The Daily Star as a trusted source

And why not? After all, they have alternative options to whiten black money through purchase of apartment, car or land on payment of nominal taxes or financing political parties or political leaders for that matter to enjoy de facto immunity. On any big purchase deal we should ask for the source and raise the relevant tax rates. So, we say strike at the root of the evil, plug the holes through which bad money drives good money out of circulation. This is the only way to get rid of black money supremacy.

To begin with, however, allow no more amnesty on black money. Along side, we would also appreciate the government making a public declaration on the disclosures of black money todate with amounts shown and taxes paid against each name on the benighted list.