TDS Desk:

The government has cancelled the facility that allowed the legalisation of undisclosed income by paying a 15% tax.

The National Board of Revenue (NBR) issued a Statutory Regulatory Order (SRO) in this regard Monday (2 September), according to sources at the NBR.

As a result, the opportunity to legalise undisclosed money in the share market, cash, bank deposits, financial schemes, and instruments by paying 15% tax has been revoked.

Now, to legalise undisclosed income in these areas, the applicable tax rate, which can be as high as 30%, must be paid along with an additional 10% penalty on the payable tax.

In the FY25 budget approved in July, the recently ousted Awami League government permitted the legalisation of black money with a 15% tax.

This decision faced intense public criticism, as legitimate taxpayers are subject to income tax rates of up to 30% plus an additional surcharge. At that time, critics argued that allowing black money to be whitened with a 15% tax could exacerbate financial sector irregularities.

For FY21, the former Awami League government also allowed black money legalisation with a 10% tax. According to NBR sources, a total of 11,839 people legalised about Tk20,500 crore in FY21 – the highest in the country’s history in a single year and NBR received Tk2,064 crore in revenue from those investments.

However, despite the cancellation of the 15% tax facility for undisclosed income, the existing facility to legalise money by paying a specific tax on the purchase of flats, houses, and land remains unchanged.