Govt amends scheme amid criticism
The finance bill 2022 was passed in the parliament on Wednesday with amendments to the amnesty proposed earlier for bringing back smuggled-out money.
Out of three proposals announced by finance minister AHM Mustafa Kamal for the repatriation of undisclosed cash and assets held by Bangladesh abroad two were cancelled.
The provisions are payment of 15 per cent tax on immovable properties and 10 per cent on movable properties.
The provision of bringing back cash by paying a 7 per cent tax, however, was retained in the amended bill that was passed in voice votes in the parliament.
Kamal, who placed the bill on June 9, had proposed that the government would not ask any question about the sources of the money or assets held abroad if 7 per cent on cash or cash equivalents were paid.
Economists had criticised such amnesty, terming it ‘unethical.’
They also said such a facility would encourage dishonest taxpayers.
A new clause ‘Penalty for any offshore asset not disclosed in the return’ has been inserted in the amendment.
The Deputy Commissioner of Taxes shall, after ensuring a reasonable opportunity of being heard, proceed to recover from such person the amount of penalty equal to the fair value of such offshore asset, said the clause.
Discussing on amendment proposals in Jatiya Sangsad on Wednesday, a number of opposition parliament members expressed their doubts about the success of the amnesty.
Those, who smuggled money out of the country, have no intention to bring them back, they said.
A total of 17 amendment proposals were accepted by the finance minister.
The finance minister said that he could not take more amendment proposals because of the unusual time in the global trade and commerce amid the ongoing war between Russia and Ukraine.
The finance minister bowed to the demand of the businesses, relaxing the condition for availing 2.5 percentage points reduction in corporate tax.
The corporate entities had to spend Tk 12 lakh out of the banking channels to avail the tax facility, according to the original proposal. The ceiling has now been increased to Tk 36 lakh.
Metropolitan Chamber of Commerce and Industry had been suggesting that the government should relax the provision of mandatory bank transaction of expenses for the industries to enjoy the corporate tax reduction facility.
The government has also relaxed the provision of showing income taxpayers’ return documents for various services.
Some other changes were brought to the original proposals for easing the import and trading of information technology-related gadgets.
The finance minister has targeted Tk 3.7 lakh crore as revenue against a Tk 6.78 lakh crore expenditure outlay.
To meet the budget deficit of 5.5 per cent of the gross domestic product in the financial year 2022-23, he projected that the government would borrow over Tk 1 lakh crore from the country’s banking system.
Economists have cautioned that the projected high borrowing from the country’s banking system would create chances for the government to crowd out the private sector.
The appropriation bill for FY23 is set to be passed in parliament today.
The new financial year will start on July 1.
News Courtesy:
https://www.newagebd.net/article/174690/govt-amends-scheme-amid-criticism
