The Center for Policy Dialogue (CPD), a private research institute, has recommended that black money laundering be stopped in the next budget. The CPD thinks that honest taxpayers are discouraged when black money is given a chance to be laundered, and
tax evaders are encouraged. In addition, the CPD has recommended the introduction of an anonymous asset bill to address the problem of giving black money a whitewash.
Apart from this, the CPD has also recommended to increase the tax-free income limit of individual taxpayers by another Tk 50,000 to Tk 3.5 million. The agency says food inflation has risen sharply. Again, due to the Corona epidemic, the income of many has decreased. Apart from this, 5 percent tax has been imposed on the first 1 lakh taka after the tax-free income limit. CPD’s proposal is to levy tax at the rate of 5 percent on the first 3 lakh rupees after the tax-free income limit.
The CPD has proposed these budgets for the next fiscal year 2022-23. The proposals were unveiled at a press conference held at the CPD office in Dhanmondi on Tuesday. CPD executive director Fahmida Khatun presented various proposals at the press conference. The press conference was not limited to the budget proposal in the end. Discussions on various issues of contemporary importance including commodity prices, forthcoming elections, Sri Lanka crisis have come up.
The CPD has made a number of proposals on customs and taxes at the event. One of these is to increase the maximum tax rate for individual taxpayers from 25 percent to 30 percent; Increasing the corporate tax rate of single company from 30 percent and corporate tax of cigarette companies from 45 to 55 percent; Increase in tariffs on soft drinks; Reducing tariffs on raw materials for sanitary napkins; Withdrawal of VAT on English medium schools etc.
Commodity price control is a priority
The CPD says controlling high prices for daily commodities is one of the biggest challenges now. Poor people are under pressure. The company believes that tackling such immediate challenges should be a priority in the budget for the next financial year. The CPD thinks that a reduction in tariffs on daily commodities could lower prices. Again OMS activities need to be expanded to sell daily commodities at fair prices. The CPD has also recommended increasing the program of providing direct cash assistance to the poor. The company expects high commodity prices to continue for the first few months of next fiscal.
CPD Executive Director Fahmida Khatun said that the information provided about inflation was not in line with reality. In reality, the price of goods is very high. But according to government data, inflation is 6 percent.
CPD Special Fellow Mostafizur Rahman has recommended action against tax and debt defaulters in the year before the election. In this context, Mostafizur Rahman said, people have to go to the polls during the election. People will be happy if any initiative is taken against tax defaulters and debt defaulters. But in this country no action is taken against tax defaulters and debt defaulters. Black money is given a chance to be whitewashed before the reverse election. Debtors are also given various types of discounts. He recommended not to take unnecessary new projects to reduce the cost of the Annual Development Program (ADP) in the year before the election.
Four passes and challenges ahead
In the next few years, Bangladesh is going through four major transitions. For example, the transition from LDC to 2028, the achievement of the Sustainable Development Goals (SDGs) by 2030, the goal of becoming a middle-income country in 2031 and a high-income country in 2041. We have to prepare now to face these challenges. CPD Research Director Khandaker Golam Moazzem said that in 2026, all the challenges of transition should not come up suddenly. For example, hard loans, tough conditions in the pharmaceutical industry, trade facilities, etc. There is still four years left. So we have to prepare now. The CPD thinks that in addition to taking some short-term initiatives in the budget of each year, there should also be long-term initiatives.
Education from Sri Lanka
The issue of Sri Lanka crisis also came up in the press conference. In this regard, CPD Special Fellow Mostafizur Rahman said that the situation in Bangladesh is not comparable to that in Sri Lanka; But there are lessons to be learned. Sri Lanka has implemented the project, but it did not end on time. This creates pressure to repay the loan. So we have to complete big projects in a timely and cost effective manner with good governance. CPD researcher Taufiqul Islam Khan also spoke at the press conference.
