The Voluntary Consumers Training and Awareness Society (VOCTA) has strongly opposed the government’s decision to allow money whitening by paying only 15 percent taxes on undisclosed income. VOCTA suggests scrapping this provision and publishing the names of black money holders in newspapers to discourage illicit financial practices.

In a press conference held at the National Press Club on Tuesday, VOCTA’s Executive Director Md Khalilur Rahman Sajal emphasized that adopting their recommendation would help combat black money and deter individuals from engaging in such activities. “Providing such facilities to whiten black money will only encourage those who earn it,” Sajal remarked.

The press conference, organized to evaluate the pro-people aspects of the proposed budget, featured several VOCTA leaders, including Chairman Professor Dr. Hossain Uddin Shekhar and Vice Chairman Sanwar Hossain Nowroz. Sajal presented ten key recommendations to make the FY2024-25 budget more consumer and people-friendly.

These recommendations include:

• Proper implementation of monetary and fiscal policies to control inflation and reduce it to 6.5 percent.
• Clear guidelines to tackle market syndicates and ensure fair pricing.
• Reducing government borrowing from banks to meet budget deficits.
• Announcing a stringent crackdown on loan defaulters.
• Increasing budget allocations for education and health sectors to foster a smart, skilled citizenry.
• Withdrawing the increased supplementary duty on mobile phone calls and internet services.
• Eliminating the provision of money whitening by paying 15 percent tax.
• Raising the tax-free income threshold from Tk 3.5 lakh to Tk 4 lakh.

Sajal highlighted the proposed budget’s deficit of Tk 2,51,600 crores against an estimated income of Tk 5,45,400 crores. While the budget acknowledges economic challenges, it lacks specific mechanisms for timely resolution. He noted that VOCTA has consistently demanded a budget that focuses on controlling inflation, boosting employment, and increasing income, but the current proposal does not adequately address these issues.

“The budget proposes measures that can somewhat control hyperinflation, but it fails to offer concrete steps to combat food price inflation, which is around 12 percent,” Sajal stated. He also criticized the budget for not providing clear directives to increase food production and supply to desyndicate the market.

Sajal pointed out that reducing taxes and VAT on several products might offer relief to traders, but its impact on consumers remains uncertain. He also criticized the increased duty on refrigerators and air conditioners, which will burden the middle class.

He concluded by stating that the provision to whiten black money with a 15 percent tax is both morally and economically unacceptable, as it encourages corruption and is contrary to justice. VOCTA believes the government should withdraw this provision immediately.