Saturday, April 27, 2024
The Centre for Policy Dialogue (CPD) has proposed raising the tax-free income ceiling for individual taxpayers by Tk 50,000 to Tk 3.50 lakh to offset the shock of inflationary pressures on the commoners.
The civil society think tank also proposed 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 Tk 3.50 lakh for the individual taxpayers.
Besides, she also suggested 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 staff in various government and private institutions in the wake of high inflation, especially food inflation.
"The low-income people need an 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 cuts 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 because next year will be the election year. So, we want to see the government's expenditure management and subsidy in a rational manner," she added.
Citing that there is a liquidity crisis in the banking sector, the CPD executive director suggested increasing the liquidity.
Dr Fahmida said although the prices of many commodities have declined globally, there is a little reflection in the local market. She also urged the government to give proper attention in this regard.
