People’s rights are attached to smuggled money, says Kamal

In the face of mounting criticism, Finance Minister AHM Mustafa Kamal has defended the government’s plan to give Bangladeshis scope to legalise unreported offshore assets without facing any questions from authorities.

In the draft budget for the upcoming fiscal year, the minister proposed a 15 percent tax on immovable property located abroad, and a 10 percent tax on movable property if it is not brought back to the country. The privilege will remain in effect from July 2022 to June 2023.

“Those who took [their assets] abroad without understanding [the consequences]. This initiative is geared towards bringing these [assets] back into the mainstream of the economy,” Kamal said, addressing the issue on Friday.

According to the minister, the people of the country have a ‘right’ to the money smuggled abroad, which the government aims to secure.

Kamal believes that those who have amassed wealth by syphoning off money abroad will be encouraged by the amnesty offered in the budget to bring back the money.

On Thursday, Kamal rolled out a Tk 6.78 trillion spending plan for the upcoming fiscal year starting July 1. The amnesty for undisclosed offshore assets is one of the proposed avenues for funding the expenditure.

But the proposal has drawn heavy criticism from various quarters. Economist Selim Raihan sees it as a “kind of endorsement” of money laundering. And Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, said the proposal was not “morally acceptable, economically justified and politically wise”.

“What has been trafficked is the right of the people of this country. If we place obstruction, the assets will not come back and in that case, how will we be benefitted? We want to do what other countries do. Seventeen countries are granting amnesty to bring back money into their economies.”

The finance minister claimed that similar measures are in place in the United Kingdom, the United States, Germany, Malaysia and Norway.

“Money has a distinctive feature. It goes where the return is higher. Those who smuggle money do not do so in suitcases. We are in the digital age now. It can be done in various ways.”