The country has around 2 lakh crore taka of unclaimed or black money. This is around 6 times the government investments and around one third of the total GDP. Federation of Bangladesh Chamber of Commerce and Industries gave us this information.

FBCCI President Anisul Huq told us that the black money amount is almost two lakh crore taka. This is one third of the GDP. Almost a similar figure was calculated from World Bank regarding black money. Back in 2002, the World Bank calculated and published a list of 110 countries and their total finances. Amongst these countries, the amount of Black money in Bangladesh was calculated to be around 35.60 % of the total GDP.

In 2008-2009, the country’s GDP is projected at 6 lakh 14 thousand crore taka, and for the 2009-2010 year the amount the government calculated will be somewhat around 30 thousand 500 crore taka. So it means that the amount of black money in the country is around 6 times the government reports and around one third of the total GDP.

NBR sources said that at first, in the era of Ziaur Rahman, the law was inacted so that the black money could be whitened. From then on, even after five next governments had given the same benefits, so far only 14 thousand 200 crore taka had been whitened by payment of taxes. In Zia’s term around 70 crore taka, in Ershad’s term around 850 crore taka, in Awami League’s term around 9000 crore taka and in the four party alliance term around 4600 crore taka and in the end during the tenure of the caretaker government, around 10000 crore taka had been whitened and accounted for.

After liberation, many different Government had given the green signal to whiten black money by investing them in businesses. Even then, the black money is increasing at alarming rate. Bangladesh Bank’s ex deputy governor and Brac Bank Chairman Md. A (Rumi) Ali told that unaccounted money was never out of investments. If all money accounted for in the past through taxes were for business matters then the businesses would be at a standstill. It is because the people are reinvesting the profit black money- the more black money is in circulation.

In 2009-2010, the Grand Alliance government project budget discussions gave way to the whitening of black money and thus became a controversial topic again. Finance Minister Abul Mal Abdul Muhit said that till 2012, the black money can be whitened in some production business and through paying around 10% tax to the government.

The government said that those who will take these steps to whiten black money, they won’t be asked about the fact from where they got this money. Ex-finance minister M Saifur Rahman (2005-2006) had said the same thing in the budget at that time. According to NBR sources, it was found that there is a Tax law to encourage businesses to sprout, this law is known as 19 (A).

In this law, if you invest in any business, your source of income will not be asked. And so that grand alliance government had given a tax rate of 10% and also asked the people to invest in business which lead to mass scale production.

NBR’s ex officer (Tax and Laws) Alu Ahmed said that the concept of showing unclaimed finance as a claimed source of investment is not wrong or illegal. Tax Law 19A has this kind of rule. He said that since the law has division of classes, sometimes the unclaimed finances are created. So if there are no amendments to the law, then there is a higher chance of unclaimed money rotating around.

NBR said that after independence during the tenure of Military leader Ziaur Rahman, back in 1976, the first benefit of whitening black money was given to the people. Duringn the military rule, the black money whitened amounted to around 70 crore taka with 15% tax. The government in this case earned only 10 crore. After this during the tenure of Ershad, the same decision was given but this time with 20% tax. During that tenure of 1987-1988 around 200 crore taka were claimed. Then on to increaste treasury and business, he reduced the tax amount to 10% on unclaimed money. During ’88-’90, around 600 crore taka were claimed. In the first year around 250 crore taka and in the second year around 400 crore taka were legalised.

After the fall of Ershad’s government in 1990, the BNP government came into power. Then Saifur Rahman discouraged the whitening of black money. During Awami League’s tenure, to increase investments, the government again gave a tax of 10% to whiten black money during the term 1996-2001, more than 1000 crore taka were whitened. But after coming to power the second time, the BNP government did not turn their back against this money-whitening concept. Saifur Rahman progressed the concept and allowed buildings, cars and sharebazaar money to be whitened.

In the previous alliance government the finance minister M Saifur Rahman gave a10% tax on unclaimed asset to make it legal. During that controversial fiscal year, he said, ‘ Many are saying that there are a huge amount of unclaimed money in the country. This kind of money has been allowed to invest without any barriers.’ At this point the finance minister himself said that this kind of money whitening does not have a good impression. But even after all this, he was pressurized from sectors to keep the tax law in the year 2006-2007, not only that in the final year he also allowed the people to legalize assets.

Awami League tenure saw the tax snapped at whitening black money to about 10% but in the tenure of 2006-2007 the ex finance minister Saifur Rahman allowed the money whitening at only 7% tax. During the fiscal year 2006-2007, Saifur Rahman increased the house tax rate from 10% to 15% and made way for legalizing illegal assets.

At that budget, the Gulshan, Banani, Baridhara, Dhanmondi and DOHS areas and Chittagong’s Khulshi and Panchlaish area plots were allowed to be legalized. For a 200 sqm area, there was a tax of 300 tk per sqm. And for housings greater that 200 sqm, the amount was increased to 500tk per sqm. Even the tax on a house bought was increased from 5% to 7% and car tax was increased from 5 and 6% to 10 and 15% respectively. At this rate the tax amount earned was around 4603 crore taka from July of 2005-2006 till the fiscal year 2006-2007, in whitening black money.

Even though Anti Corruption Committee vigorously worked ahead to eradicate corruption, the immediate past caretaker government also kept the tax law like the previous governments to whiten black money.

After the 2007 shift in power, the caretaker government allowed whitening of black money in a process called SRO 98, just before announcing Emergency.At this, the previous law was enacted to add a 5% extra fine charges. Due to an array of anti corruption drives, the caretaker government was able to recover around 10000 crore illegal money. Amongst this, in the year 2007-2008, around 42591 people gave the required tax to legalise their money. Only in the year 2007-2008, around 895 crore taka was legalized. At the later years, after the anti-corruption drive dried out only 14622 people whitened their monetory asset of 988 crore taka. According to NBR sources, around 71% of those who whitened their money live in Dhaka, 19% of them in Chittagong and other from different areas.

Most of those who legalized their money were businessmen and artists. Apart from this, doctors, engineers, customs officers, police, bankers, housewives etc and also countless ministers and politicians were in the list.

Even Khaleda Zia and Saifur Rahman had taken the full benefits of whitening black money. When the caretaker government allowed the legalization of money, the BNP Chairperson took full benefit of it and also Saifur Rahman applied to NBR to whiten their unclaimed money. Even though they took the application of Begum Khaleda Zia, they did not take the application of Saifur Rahman.