CPD proposes tax-free income limit at Tk 3.50 lakh

Published : 27 Mar 2023 09:49 PM

The Centre for Policy Dialogue (CPD) has proposed for raising the tax free income ceiling for individual taxpayers by Taka 50,000 to Taka 3.50 lakh to offset the shock of inflationary pressures on the commoners.

The civil society think tank also proposed for providing 'special increment' to the lower tier employees both at the public and private institutions.

Executive Director of CPD Dr Fahmida Khatun said this while presenting its budget recommendations for FY24 at its office at Dhanmondi in the capital.

Dr Fahmida said that due to increase in the price of essentials especially the food items, the purchasing power of common people has declined for which the think tank has proposed for raising the tax free income ceiling to Taka 3.50 lakh for the individual taxpayers.

Besides, she also suggested for expanding further the Open Market Sale (OMS) operations for the low-income group people.

Speaking on the occasion, research director of CPD Dr Khandker Golam Moazzem said that there is a need to introduce 'special increment' for the lower-tier staffs in various government and private institutions in the wake of high inflation especially food inflation. "The low income people needs increment and it can be ensured ahead of the Holy Eid Ul Fitr," he said.

Dr Fahmida Khatun noted that the government is yet to achieve desired revenue collection since necessary reforms are yet to take place resulting in lack of desired revenue collection.

 "As a result, the government has to make cut in its revenue expenditure," she said stressing necessary reforms in the revenue management system.

She said that in order to ensure macroeconomic stability, there is a need to ensure balanced coordination between revenue policy and monetary policy. "Hopefully, we'll be able to see its reflection in the next budget. The next budget is very important as because the next year will be the election year. So, we want to see government's expenditure management and subsidy in a rationale manner," she added.

Citing that there is liquidity crisis in the banking sector, the CPD executive director suggested for increasing the liquidity.

Dr Fahmida said although the prices of many commodities have declined globally, but there is a little reflection in the local market. She also urged the government to give proper attention in this regard.