High prices become onerous for middle-income people too: CPD

The Centre for Policy Dialogue (CPD) today said the current price situation in the market has become onerous for the middle-income people apart from putting adverse impact on low- and lower-income population.

As the high level of prices is expected to continue for the remainder of 2021-22 fiscal year and at least the early months of the next fiscal year, reining in the prices of essentials should be the most urgent and critically important macroeconomic policy objective in Bangladesh, according to the think-tank.

The CPD made the statements at a news briefing at its office to place its recommendations for national budget for the 2022-23 fiscal year.

To reduce prices, it suggested reduction of import tariff, value-added tax and other taxes to keep prices stable so that low- and limited-income people get some relief.

It also proposed increasing the tax-free income threshold to Tk 350,000 for the next fiscal year in view of the added pressure of the rising food inflation and income erosion induced by the pandemic.