Raise tax-free income limit to Tk5 lakh: Speakers

Speakers at a dialogue on Saturday urged the government to announce an ‘economic emergency’ and demanded a cut in Value Added Tax (VAT) on fertiliser, fuel and consumer goods taking into account the current situation.

They also urged the government to raise the tax-free income limit up to Tk 5 lakh in the upcoming budget for the fiscal year 2023-24.

The speakers made the call at a dialogue titled “What can be done to prevent inflation, discrimination and wastage” organised by Democratic Budget Movement (DBM) at its office in Dhaka.

In his presentation, Aamanur Rahman, co-chairman of the organisation, said that the income inequality has widened and so when people think that their hard-earned money is being misused, they naturally become disenchanted and show reluctance to contribute financially.

DBM General Secretary Monower Mostafa said that the substantial gap between incomes and expenses has made it challenging for them to maintain a standard of living.

Furthermore, the failure to control wasteful spending on the government projects has led to an escalation in the costs of almost all initiatives, worsening the situation.

In light of this situation, he called for the preparation of a budget for austerity by declaring an “economic emergency” for the next two or three years.

He also proposed a tax-free income limit up to Tk 5 lakh in the next budget. This would ensure that the budget for the fiscal year 2023-24 would not put any additional burden on the common people rather it would help reduce inequality.

Khondker Rebaka Sunyat, Vice-Chairperson of Participatory Development Action Programme (PDAP) that works on the rights of the urban poor, pointed out that the government is not much interested in eradicating urban poverty.

“The government does not consider why people leave villages and migrate to cities. People want a secure life and they will go there where there is opportunity.”