Tk 2,000 minimum tax illogical, immoral: CPD

The proposal of imposing a minimum tax of Tk 2,000 even on those individuals who do not have taxable incomes is illogical and immoral, said Centre for Policy Dialogue (CPD) on Friday.

It urged the government to withdraw the proposal of the minimum income tax.

“On the one hand, the government has proposed to increase the tax-free income limit to relieve the common people from the pressure of inflation, but on the other hand they (government) proposed minimum income tax of Tk 2,000. Those who do not have taxable income will also come under this tax. This proposal is neither logical nor moral,” said CPD at a press briefing at a hotel in the capital while presenting the analysis of the national budget for the fiscal 2023-24.

CPD Executive Director Dr Fahmida Khatun this move will burden low-income TIN holders.

On Thursday, Finance Minister AHM Mustafa Kamal proposed a minimum income tax of Taka 2,000 for individuals who are required to submit income tax returns to avail various government services even if they do not have taxable incomes.

Fahmida Khatun said the FY2023-24 budget lacks new initiatives focused on migrant workers and enhancing remittance flow.

To address this, she mentioned, CPD proposed two key measures: a) increasing the cash incentive from 2.5 percent to 3 percent; b) implementing a multi-year mega project to tackle challenges faced by migrant workers across the three stages of migration: pre-departure, destination, and reintegration.

Among others, CPD Distinguished Fellow Prof Mustafizur Rahman, Research Director Khondaker Golam Moazzem and its Senior Research Fellow Towfiqul Islam Khan also spoke during the event.