The Center for Policy Dialogue (CPD) has stated that the current tax structure places a heavier burden on low-income individuals. CPD emphasized the need to increase the tax-free income limit in the proposed budget for the fiscal year 2026-27. CPD Executive Director Fahmida Khatun mentioned that the current tax-free income limit is insufficient to provide relief to low-income people, especially given the high inflation. She questioned the logic of a minimal increase in the tax-free income limit from 3 lakh to 3 lakh 75 thousand taka, stating it does not align with the current inflation rate.
Fahmida Khatun also highlighted the positive aspect of long-term predictability in tax structures, allowing taxpayers to plan their future expenses and financial planning. However, she criticized the provision allowing undeclared or black money to be legitimized through investment in the real estate sector, calling it a form of discrimination against honest taxpayers and a risk to societal morality.
CPD Fellow Mostafizur Rahman raised concerns about the macroeconomic targets and projections set by the government in the proposed budget, stating that the foundation year used for these projections is flawed. He argued that the projections for revenue collection, private sector credit flow, import-export, and overall GDP growth are based on an unrealistic foundation, which could undermine the budget's discipline and feasibility.
