Minimum tax measures go against social justice: CPD

The Centre for Policy Dialogue (CPD) said on Friday that increase of minimum tax without a rise in the tax threshold goes against social justice.

The CPD made the observation in an analysis of the budget for fiscal 2012-13 proposed in the parliament.

“We are sorry to see no change in personal income tax threshold (remains at Tk 180,000), but minimum tax has been raised from Tk 2,000 to Tk 3,000,” said Dr Debapriya Bhattacharya, distinguished fellow of the CPD.

Considering the inflationary pressure, the tax-free income limit should be raised to Tk 200,000, Bhattacharya said.

On imposing 2 percent tax at source on mobile bill (both post-paid and prepaid), the civil society think-tank said it was not justified from the point of view of social justice.

“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,” said CPD in its immediate budget reaction.

Prof Mustafizur Rahman, executive director of the think-tank, delivered the address of welcome. Senior officials of the CPD were present on the dais.

The CPD said the budget speech of the finance minister did not reflect full appreciation of the problems arising from the macroeconomic management in the outgoing year.

Though the budget seems to be grammatically okay, inconsistencies will come slowly with the implementation, said the think-tank.