Raise tax-free income limit to Tk5 lakh: ERF

Economic Reporters’ Forum has urged the National Board of Revenue (NBR) to raise the tax-free income threshold to Tk5 lakh, taking into account the ongoing economic crisis and inflationary pressure.

The forum put forward the written proposal to the revenue board at a pre-budget discussion organised by the NBR at its conference room in the capital’s Agargaon on Sunday.

“The inflation has reached the highest level in last one decade that has ramped up the overall cost of living too. Even it is higher than the neighbouring country India. In such situation, Indian government has made an announcement on increasing the income tax-free limit to Rs7 lakh from Rs5 lakh,” ERF says.

“So, the NBR can fix the income tax-free ceiling at Tk5 lakh for low and middle income people to give them some relief from tax burden,” it added.

ERF also proposed strengthening the tax refund system to help increase the stimuli for payment of taxes.

In reply, NBR chairman Abu Hena Md Rahmatul Muneem said, “We are trying to ease the refund system. If the money penetrates in the government exchequer, refunding the money is quite tougher.”

In addition, the forum proposed waiving import duty on school, college and university buses saying that these buses should be made mandatory. It would reduce traffic too, it added.

ERF also suggested imposing more value-added tax and supplementary duty on cigarettes and fixing its prices so that people do not have to pay more than the prices printed on packets.

The reporters said that due to an increase in retail prices, people cost Tk 6,000-7,000 yearly, but the government does not get taxes from extra prices.

ERF also proposed bringing foreign nationals and house property owners under the tax net, popularising online tax return submission and electronic fiscal device, checking VAT evasion, waiving tax on contributions to foreign media, and framing new laws after impact assessment etc.

The reporters said, “Every year we see that the government in the national budget allocates more to the businesses, not to middle income people.”

In his reply, the NBR chairman said that the budget is prepared for lower income people but the people cannot understand as it is given indirectly. “For example, we include Made in Bangladesh policy support for industries to reduce imports, save dollar and create employments. That ultimately helps the nation as well as lower earners.”

ERF President Refayet Ullah Mirdha, General Secretary Abul Kashem and other executive committee members were also present at the meeting apart from senior NBR officials.