205 people have invested Tk228 crore of their undisclosed money in the capital market during the first six months of the current fiscal year
The purpose of this investment is to whiten their black money by paying tax at a rate of 10%.
The government has received revenue of Tk22.84 crore since the return of black money into the mainstream via investment in the capital market.
The taxpayers have disclosed this investment in their income tax returns.
This money was invested in the capital market between 1 July and 31 December 2020, and the investment opportunity will continue until June this year.
In order to bring black money (out of the tax net) back into the mainstream, the budget for the current financial year provides the opportunity for unconditional investment in the stock market with a 10% tax.
In his budget speech for the fiscal year 2020-21, Finance Minister AHM Mustafa Kamal said, "The stock market acts as a major hub of economic activity of the country. In order to provide impetus to the stock market, individual taxpayers can invest money in the capital market between 1 July 2020 and 30 June 2021 and show the investment in their tax returns upon payment of tax at a rate of 10% on the value of the investment. Conditions apply, including a lock-in period of three years. No other authority, including the income tax authorities, will raise any questions in this regard."
While applauding the opportunity to invest undisclosed money in the capital market to increase liquidity, stakeholders of the capital market demanded a relaxation of the three-year lock-in condition.
Along with the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE), the Bangladesh Securities and Exchange Commission also spoke in favour of lifting and reducing the three-year lock-in period.
Eventually, the condition was relaxed to one year.