They argued that if this money was not allowed to be invested, it would be trafficked abroad while if it was allowed the opportunity, the market would be able to overcome the persisting liquidity crisis
Stakeholders have requested the government to allow whitening black money in the capital market for the next financial year (FY2019-20) without any enquiry about the source of the money.
They argued that if this money was not allowed to be invested, it would be trafficked abroad while if it was allowed the opportunity, the market would be able to overcome the persisting liquidity crisis.
Bangladesh Pujibazar Biniogkari Oikya Parishad President Mizan ur Rashid Chowdhury said black money would be sent abroad if it was not allowed into the capital market.
Meanwhile, Dhaka Stock Exchange Brokerage Association (DBA) President Shakil Rizvi said that money whitening opportunity could be given only to those having legal income, but who did not declare their earnings.
Recently state-owned Investment Corporation of Bangladesh (ICB) made a set of recommendations to the government including offering the black money whitening facility for the stock business.
The ICB proposal said "undisclosed money can be given opportunity to be invested in share/bond in the capital market”.
ICB Managing Director Kazi Sanaul Hoq told Dhaka Tribune: “We put forward a number of proposals including the budgetary measures to bring back untaxed and undisclosed money into the capital market.”
Currently, the National Board of Revenue (NBR) allows untaxed income to be invested in the stock market and real estate business.
However, it is mandatory to mention the source of the undisclosed income while investing it in the stock market.
The opportunity to legalize black money in the industrial sector was first introduced in FY2003-04, but was withdrawn after two years.
In FY2006-07, the caretaker government also offered the scope for converting illegal earnings into white money by paying a penalty.
According to the Bangladesh Economic Association (BEA) estimate, Bangladesh has around Tk5 trillion to Tk7 trillion of black money.
Shakil Rizvi also said: “Money earned through corruption, illegal arms trading and narcotics trade should not be eligible for this facility.”
“Bangladesh would benefit if undisclosed legal income is brought back to the formal economy through a national fiscal plan,” he added.