The Center for Policy Dialogue (CPD) has recommended raising income tax on the rich in the national budget for the next fiscal.
The research institute made these recommendations at a virtual media briefing on Thursday morning.
They also demanded the suspension of supplementary tariffs and source taxes on the internet. It also demanded that the budget focus on health, social security, agriculture and education. At the same time, it suggested giving importance to three issues while allocating budget money. These include re-adjustment, recovery and reform.
CPD's Honorary Fellow Professor Mostafizur Rahman and CPD Research Director Dr. Khandaker Golam Moazzem spoke during the event conducted by Dr Fahmida Khatun. Executive Director of CPD. The original report was presented by the research fellow of the organization Tawfiq Islam Khan.
While presenting the report, Tawfiq Islam said that the income tax on the rich was reduced from 30 percent to 25 percent last year. It should be taken back to 30 percent. It is compatible with the macro-economy and the current situation. Different countries have done it now. Even the United States has raised tax rates for the rich.
Demanding the suspension of the internet supplementary tax and source tax, he said that the use of the internet has now become very important. It is used only by rich people; many ordinary people have to use it for education and other purposes. “We recommend withdrawing the 15 per cent supplementary tax”, he added.
The budget proposal of CPD suggested that some 2 to 3 percent of the country's gross domestic product (GDP) should be allocated for the health sector and 4 to 6 percent for social security.
"Because of the coronavirus, the poverty rate increased in the country at a time when the tax collection from different sources was not satisfactory for the government," said Professor Mostafizur Rahman.
Responding to a question he said, “Tk 10 to Tk 12 thousand crore has been laundered in the current financial year. Which doesn't seem like a high number. Rather we think it is discouraging those who are paying regular taxes.”
