From black to white
THE proverbial saying: "money is the root of all evil" has perhaps not been more poignantly exposed elsewhere in the world than in Bangladesh, as far as the black money is concerned. From buying political power to criminalising the society or becoming dons or godfathers, black money has a role to play.
An awful amount of money is ready to change its colour from black to white, as the Finance Minister A.M.A. Muhith has admittedly been forced to incorporate an unethical provision into the national budget for 2009-10, against the government's will. This shows the extent of power of black money, though the finance minister has termed it as an art of compromise.
Critics feel that the government, voted to power by millions, lacks moral courage and is going against electoral pledges, keeping the unethical provision in force to turn black money into white.
The provision of whitening black money was first introduced in the national budget for the fiscal year 1975-76 to bring some Tk.70,000 crore of black money into the formal economy, but only Tk.7 crore was whitened. The facility was again offered for the next consecutive three fiscal years, from 1987-88 to 1989-90, and Tk.200 crore, Tk.250 crore and Tk.400 crore respectively were whitened during that period.
The Awami League government revived the facility in 2000-01 and Tk.1,000 crore was whitened.
The BNP-led coalition government introduced the provision of whitening black money in the budgetary policy initially for two years, beginning from 2003-04, for bringing the bulk of black money into the formal economy. Black money, amounting to Tk.1,775 crore, came into the economy through this process. Some 1,077 people legalised the untaxed money they had during this period.
The record-breaking amount of Tk.10,000 crore was whitened during the tenure of the caretaker government under Fakhruddin Ahmed, as it had launched a crusade against corruption.
We do not know whether anyone carried out an extensive study to find out the actual quantity of black money we have in the country, as well as the amount of black money invested in the productive sector.
There are only a few estimates about the amount of black money, which vary widely. Given the power of the black money holders to create pressure on the government, the amount of such money surely has become enormous over the years, and could be counted in billions.
The government is obliged to inform the people of the actual amount of black money that has been recovered so far and invested in the productive sectors, as it has always said that such money is necessary for economic development of the country. People have the right to know all about it.
"Politics is the highest art of compromise" because it involves compromise with the opponents for the interests of the people. But compromising with criminality is not an art but an artifice, which cannot be accepted. Keeping the provision of whitening black money is not a compromise, but capitulation of the government to the force of black money.
The use of black money has manifested itself in many bizarre forms in our country. Obviously the economic affairs of black money holders, including criminalisation of politics, are proceeding according to a well-orchestrated plan, which is supported by persons in the corridors of power. Otherwise, the government that had pledged to stand against corruption would not allow such a facility, which breeds corruption.
Certainly, there is no denying the fact that black money has become a part of politics and has been plaguing the process of democracy in the country. The scope for whitening black money raises ethical questions and encourages the operation of black money, not only in the economic field but also in other fields of life, including politics.
Some years back, the government of India also announced tax concessions through a Voluntary Disclosure Scheme for people with black money to declare their unaccounted wealth. Raids were conducted by the income tax people on big business houses and individuals, and several crores of black money was brought to light in this way.
Bangladesh may also consider similar action for bringing black money to light without providing more scope for whitening black money to satisfy an unscrupulous section of people.
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