Amid widespread criticism, Finance Minister AMA Muhith today told the parliament that the period for whitening black money would be reduced to one year from proposed three years.

In the budget proposal, the government had suggested a three-year-period for legalising black money on 10 percent tax that sparked huge criticism across the country.

The black money holders will still enjoy the money whitening opportunity without facing any question about their sources, Finance Minister AMA Muhith said at a discussion in the parliament on the proposed budget for 2009-10.

Muhith also announced that tax on mobile phone handset would be reduced to 12 percent from proposed 25 percent. The government also decided to reduce corporate tax on bank and non-banking financial institutions by 2.5 per cent, Muhith said.

Muhith said the government decided to withdraw 5 percent customs duty on the import of newsprint, which was proposed in the budget speech. Value Added Tax (VAT) on herbal, Unani medicine, and manpower recruiting agencies will also be withdrawn, said the minister.