Illegally earned or undisclosed money for which tax are not paid is called black money. No one knows about the size of black money in Bangladesh’s economy. But economists believe it may equal to regular legal economy.
The ruling AL promised to curb corruption in their election manifesto before the election. But after taking the office they retained the provision of whitening black money. Many citizen groups said, that simply encouraged corruption and discouraged true tax payers.
Last year government also allowed investment of black money in the capital market. Many believe this allowed corrupted guys to take control of the capital market.
Recently the finance minister hinted that the government would again allow whining of black money in the next fiscal year.
It is said that the flow of capital may help the economy and new investment may create job opportunity.
Transparency International Bangladesh also condemned this in a statement yesterday. They also said the finance minister’s remark that ‘it is not possible to control and discourage black money’ is an indication of losing the battle to corruption.