CPD distinguished fellow Debapriya Bhattacharya speaks at a post-budget briefing in Dhaka on Friday. — New Age photo

The Centre for Policy Dialogue on Friday alleged that the government preferred some easy initiatives, instead of innovative and progressive measures, to increase revenue earnings which would create tax burden on general people and go against social justice.
‘The unchanged ceiling of tax-free income for individuals and the increased minimum tax does not reflect social justice,’ CPD, the country’s leading think-tank, said in its budget analysis.
The decision would also increase tax-burden on fixed income group while no additional taxes were imposed on rich taxpayers, it said at a briefing on Friday.
The finance minister, Abul Maal Abdul Muhith, in his budget speech proposed to increase minimum tax to Tk 3,000 from Tk 2,000 while the personal taxable income limit remained at Tk 1, 80,000.
At a post budget press briefing held at BRAC Centre Inn, CPD’s distinguished fellow Debapriya Bhattacharya said that the government did not consider high inflationary pressure and income of mass people while taking the decision.
‘Finance minister looked for easy tax and chose the way which will create difficulty for taxable low income groups,’ he said, adding that easy tax system is not efficient and progressive.
The more income, the more tax—this should be the policy. But the government opted for a flat tax policy, he said.
CPD had proposed to increase the tax-free income limit to Tk 200,000, considering inflationary pressure. ‘But we are sorry to see no change,’ Debapriya said.
On imposing 2 per cent tax at source on post-paid and prepaid mobile bills, he said that it was absurd and not justified from the point of view of social justice.
It should not be wise to impose such a tax for earning a little revenue, he added.
‘If the government is keen to raise taxes, it should go for ‘ability to pay’ method and find ways to impose taxes on use of various services by more resource-endowed people,’ CPD said.
The independent research institution proposed to consider for downward revision of export duty (to be deducted at source) to 1 per cent from the proposed 1.20 per cent.
The export is experiencing downtrend and a depression in global market is continuing. So considering the issues, export duty should reduce, CPD said.
On withdrawing 20 per cent regulatory duty on import of refrigerators and motor cycles, CPD said that the decision is likely to hurt the flourishing local manufacturers.
CPD executive director Mustafizur Rahman,  research director Fahmida Khatun, senior research fellow Khondaker Golam Moazzem, among others, were present.