Center for Policy Dialogue (CPD), the private economic research organization of the country, has recommended increasing the annual tax-free income limit of individual taxpayers from Tk 350,000 taka to Tk 4 lakh.
The organization's executive director Fahmida Khatun made the proposal at a press conference organized at the CPD office in Dhanmondi on Sunday regarding the budget recommendations for the upcoming fiscal year 2025-26.
She said, “Due to high inflation, the cost of living of the people is increasing. In such a situation, protecting the interests of low-income deprived people is very important now. In this context, the personal income limit should be increased from Tk 3.5 lakh taka to Tk 4 lakh. Hence, the impact of inflation on low-income people will be less.”
Currently, individual taxpayers are taxed at rates of 5, 10, 15, 20 and 25 percent. There is no tax on the first 3.5 lakh taka. The tax rate is 5 percent for the next one lakh taka, 10 percent for the next four lakh taka, 15 percent for the next five lakh taka, 20 percent for the next five lakh taka and 25 percent on the remaining amount.
In addition, the tax-free income limit for female taxpayers and those over 65 years of age is Tk four lakh. The tax-free income limit for third-gender taxpayers and disabled natural person taxpayers will be Tk five and a half lakh. The tax-free income limit for gazetted freedom fighter taxpayers is Tk five lakh. And the tax-free income limit for each child or pet of the parents or legal guardian of a disabled person will be an additional Tk 50 thousand.
In addition, the minimum tax for taxpayers located in Dhaka North City, Dhaka South City and Chattogram City areas will be Tk 5 thousand, for taxpayers in other cities Tk 4 thousand and for taxpayers in other areas except city corporations Tk 3 thousand.
Bd-pratidin English/Lutful Hoque
