The Bangladesh Bank on Monday instructed all commercial banks to circulate the policy of providing tax amnesty against returns of offshore assets by paying 7% in tax.
In a notice issued on the day, the central bank directed all managing directors and chief executive officers of all commercial banks to ensure the offer's publicity among clients at the branch level.
On July 18, a Bangladesh Bank circular stated that any form of undisclosed offshore assets can be brought into the country legally through the banking channel between 1 July and 30 June 2023 by paying a 7% tax.
The assets can be filed in the income tax return, the circular added.
The government in the budget for FY23 provided a window for people to bring back undeclared offshore funds home by paying a 7.5% tax without scrutiny, a move that was widely criticized.
Such initiatives were taken to tackle the existing dollar crisis and bring back money laundered abroad, Finance Minister AHM Mustafa Kamal had told journalists in back May.
NBR: Offshore tax amnesty not to endorse black money
The offshore tax amnesty was offered to encourage bringing back legally-earned money, not black money, the National Board of Revenue (NBR) chairman said on Sunday.
The NBR offered the amnesty of not asking the source of such money, so that expatriates can feel comfortable, he also said.
Speaking at a press conference on the NBR premises, he said a negative impression on the offshore tax amnesty is being spread, although the revenue board has offered the fiscal measure to bring the (legally-earned) money into the formal economy.
Responding to a question on tax adjustment of petroleum products, the NBR chairman said the revenue board was yet to get any instruction regarding the matter from the government high-ups.
He, however, said the NBR would adjust the taxes on fuel prices, if the government wished to do so.
On Saturday, the government increased fuel prices up to 51.7%, a record hike in history.
On offshore tax amnesty, NBR member (income tax policy) Md Shamsuddin Ahmed said the facility has been offered following the success of other countries in bringing back money by enacting such a provision.
Responding to a question, the NBR chairman said the amnesty has been offered not on the basis of pre-collected data of people willing to bring back money.
"During their overseas stay, many people accumulate assets and income. They would not get any significant return on the income from banks."
The NBR offered amnesty for this type of people to bring back their money into legal channels, not illegally earned money, he added.
In the press conference, the NBR chairman gave a detailed presentation on fiscal measures in the budget for this fiscal year (FY), 2022-23, along with the NBR's future plan and last FY's performance.
The NBR chairman said fiscal policies have been framed to facilitate 'Made in Bangladesh' brand and heavy manufacturing industries to minimize the country's dependency on imported finished goods.
The NBR collected Tk301,000 crore tax revenue last FY against its target of Tk330,000 crore.
Target for the current FY has been set Tk370,000 crore.