The existing provision of legalising undisclosed money is likely to be placed again in the next budget as the finance ministry is under ‘political pressure’ to keep the decades old controversial fiscal provision.
Despite widespread criticisms, the ‘black money’ holders have been given an opportunity to invest in the Bangladesh Infrastructure Finance Fund, paying only 10 percent income tax in the outgoing fiscal.
Officials said the facility, which is scheduled to end in June 2011, did not bring any benefit as nobody showed interest to invest in the fund which was floated to help finance the big infrastructure projects.
The country’s business community, led by Bangladesh Federation of Chambers of Commerce and Industry, has already demanded that the provision be retained.
The ministry, however, may have to bow down to the pressure by a section of political leaders of the ruling party following lobbying from the business leaders.
The government may extend the existing facility of investing in the BIFF, the officials said, adding that the provision might keep also open for the newly established fund aimed at rejuvenating the ailing share market.
The rate of income tax is likely to go up by at least five percent from the existing 10 percent.
The stock market regulators and operators on Sunday at a meeting with the finance minister demanded an opportunity to whiten black money at least one more year to help make the bourses vibrant in the wake of credit crunch. Finance Minister AMA Muhith did not turn down their demands. Even he did not tell them anything on the sensitive issue.
The officials said they are waiting for Prime Minister Sheikh Hasina who is expected to reach home by the end of this month.
They seek intervention of the country’s chief executive before taking a final decision as social organisations have long been demanding steps to scrap the controversial issue.
Transparency Inter-national Bangladesh said any proposal to allow legalisation of black money is against the election pledge of the government.
Iftekharuzzaman, exe-cutive director of the private rating agency, said the provision, contrary to good governance and curbing corruption which is hampering the country’s economic progress
Despite widespread criticisms, the ‘black money’ holders have been given an opportunity to invest in the Bangladesh Infrastructure Finance Fund, paying only 10 percent income tax in the outgoing fiscal.
Officials said the facility, which is scheduled to end in June 2011, did not bring any benefit as nobody showed interest to invest in the fund which was floated to help finance the big infrastructure projects.
The country’s business community, led by Bangladesh Federation of Chambers of Commerce and Industry, has already demanded that the provision be retained.
The ministry, however, may have to bow down to the pressure by a section of political leaders of the ruling party following lobbying from the business leaders.
The government may extend the existing facility of investing in the BIFF, the officials said, adding that the provision might keep also open for the newly established fund aimed at rejuvenating the ailing share market.
The rate of income tax is likely to go up by at least five percent from the existing 10 percent.
The stock market regulators and operators on Sunday at a meeting with the finance minister demanded an opportunity to whiten black money at least one more year to help make the bourses vibrant in the wake of credit crunch. Finance Minister AMA Muhith did not turn down their demands. Even he did not tell them anything on the sensitive issue.
The officials said they are waiting for Prime Minister Sheikh Hasina who is expected to reach home by the end of this month.
They seek intervention of the country’s chief executive before taking a final decision as social organisations have long been demanding steps to scrap the controversial issue.
Transparency Inter-national Bangladesh said any proposal to allow legalisation of black money is against the election pledge of the government.
Iftekharuzzaman, exe-cutive director of the private rating agency, said the provision, contrary to good governance and curbing corruption which is hampering the country’s economic progress