Disclosure of undeclared income

THE National Board of Revenue announced a time schedule for turning black money white within July 31 this year. The owners of black money were encouraged to disclose the amount of money and pay due rates of taxes. They were assured of no punitive measures, including filing of litigations in the set court of law, if they take the initiative of declaring income and paying the taxes thereof. The NBR even assured that no risk is involved in declaring the unearned money before payment of taxes to the treasury.

As per provisions of law, tax payers are given Tax Identification Numbers (TIN). The listed tax payers use the TIN for declaration of the income and payment of taxes. But some money holders always avoided declaring their income and paying due amount of tax. They kept their money in undisclosed lists and that mainly for not paying taxes. Some others use fake names and companies for opening accounts in banks and thus avoiding payment of tax. As per records in the NBR, over thirteen lakh people are listed as income tax payers. Of them, some seven lakh people usually pay taxes and the rest of them avoid their obligation for payment of taxes. The present government has noted the realities in the field of tax collection and instructed the NBR to update the list of income tax payers from among the members of the business community. People having black money have also been given an opportunity to pay due rates of taxes and make their black money white.

It is reported that one hundred and thirty seven people have- already disclosed their income and paid income tax to the tune of 8.65 crore Taka. If others optimise the opportunity of declaring their black money and enlist themselves as tax payers to the NBR, then ultimate revenue earnings may be augmented. The tax-base may thus be broadened and the revenue resources increased. As a result, the financing of development projects may be augmented with internal resources and dependence on aid and loan from external sources will be reduced.

Mis-match in the management of resources so long kept the country dependent on aid and loans from external sources. The use of external resources remain tagged with the so-called technical assistance from foreign experts and specialists. A major part of the aid and loans was syphoned off by such experts and specialists. The ultimate burden of repayment of loans and also financing follow-up action-programmes falls upon the treasury. If the revenue resources are augmented with disclosure of income by people listed in the category of income tax-payers, the economy may turn self-sustaining in the coming years. The government should make sure that taxpayers feel encouraged to declare their income.