Increase tax-free income limit

The Finance Minister placed the proposed national budget for 2014-15 financial year at the Jatiya Sangsad on  June 05. The tax-free income limit for the ongoing fiscal is Tk 220,000. It has not been increased in the proposed budget. I like to draw the attention of the Finance Minister as well as the Members of Parliament (MPs) that real income of fixed income group people, particularly the service holders, in Bangladesh have been reduced to a significant extent during the last couple of years because of inflation.

But the salary of the fixed income groups does not increase instantly in relation to inflation. Consequently, their purchasing power of goods and services has gone down significantly. They are very unhappy at the gradual and continuous price increase of all items including essential products and services.

To mitigate the sufferings of the lower middle class people of fixed income group, the tax-free income limit should be re-fixed at Tk 300,000. This limit is very conservative as it is very difficult to run a standard five-member family with limited income.

In these circumstances, I urge the government to increase the tax-free income limit to Tk 300,000 for an individual in the budget of  the 2014-2015 fiscal year.

Md Ashraf Hossain

Dhaka