• Wednesday, Aug 10, 2022
  • Last Update : 04:24 pm

Kamal: Black money strengthened stock market

  • Published at 09:04 pm June 3rd, 2021
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Representational image Syed Zakir Hossain/Dhaka Tribune

311 taxpayers have paid income tax of nearly Tk43.55 crore as of February 2021 to whiten money

The inflow of undisclosed income through the money whitening scheme has strengthened the stock market, Finance Minister AHM Mustafa Kamal has said.

The minister made the comment while presenting a Tk603,681 crore budget for the upcoming 2021-22 fiscal year in parliament on Thursday.

He said that under the provision of allowing previously undisclosed income to invest in the capital market with some reasonable conditions like mandatory one year lock-ins, 311 taxpayers have paid income tax of Tk435,452,098 as of February, 2021.

“This additional liquidity has strengthened the market,” he added.

The stock market indices had seen significant rise recently, with Dhaka Stock Exchange index crossing 6,000 point after more than three years.

Also Read - Budget FY22: What about money whitening?

The minister also said: “Under the provision of reporting previously undisclosed income in the income tax returns, 9,623 taxpayers have paid so far a total income tax of Tk1,386 crore 10 lakh 2 thousand 795 till February 2021.

“This additional revenue was very helpful for the economy during the Covid-19 pandemic.”

At an event last month, Kamal had said that the government would retain the provision for whitening undisclosed money in the budget to bring that money into the mainstream of the economy.

The government would continue this until the undisclosed money is legalized fully, he said.

The finance minister in the last national budget for the outgoing fiscal year had offered the unlimited scope for legalization of untaxed money and assets for a year between July 1, 2020 and June 30, 2021 along with indemnity to owners of such assets on condition that a specified rate of taxes is paid.