• Monday, Aug 15, 2022
  • Last Update : 04:24 pm

Budget FY21: 50% penalty for money laundering

  • Published at 04:08 pm June 11th, 2020
web-money laundering
Bigstock

Finance Minister Mustafa Kamal hopes the proposed provisions will be highly effective in curbing money laundering and tax evasion

The government has proposed to impose a fresh 50% tax to check trade-based money laundering and tax evasion through fake and inflated investments. 

In the wake of widespread allegations of money laundering and tax evasion through under-invoicing, over-invoicing, and declaration of false investments, Finance Minister AHM Mustafa Kamal on Thursday reiterated the government's zero tolerance for such misdeeds. 

To put a rein on such tendencies, alongside all other existing laws in this regard, the minister proposed to insert a new section in the Income Tax Ordinance which will act for levying a 50% tax on the proven amount of over- or under-invoicing, or on the proven amount of false declaration of investment. 

"I hope that the proposed provisions will be highly effective in curbing money laundering and tax evasion caused through acts of under-invoicing, over-invoicing, and false declaration of investment," he said.

The finance minister tabled a national budget of Tk568,000 crore for the 2020-21 financial year, biggest in the country's history, in a bid to drive the government's efforts to salvage the economy battered by the Covid-19 epidemic and safeguard public health.