Black money is a problem that is weakening many of the world economies in the present times. Powerful, rich and corrupt people make money by illegal means and send it out of the country using illegal methods so that it becomes difficult for law authorities to trace the black money. The malpractice of black money acts as an unhealthy aspect in the development of the economy, black money which could otherwise be used for productive tasks, goes out of the country because of few dishonest people in the country. Some highest ranked countries with huge amounts of black money are:
- China, one of the largest densely populated countries is home to the largest amount of black money. The figures show that black money reached $ 2740 billion in 2012. China’s GDP growth rate is 8.6% per annum and the tax rate is 29.4%.
- The next position is possessed byMexico, with an estimated black money figure of $ 476 billion. The GDP growth rate in Mexico is 3.7% per annum and the business tax rate is 30.5%.
- Malaysiais ranked third among these countries with black money of $285 billion and GDP is 4.6% with 24.5% business tax rate.
The smallest amount of black money is found in UAE which is $107 billion and the GDP rate of UAE is 4.9% with 14.9% tax rate.