Ridiculous decision!
The government has decided to increase the individual level of income tax ceiling from 150,000 to 165,000 to help people, considering the present cost of living. But it looks funny and it seems the government is joking with the countless suffering masses of Bangladesh. Because this insignificant increase does not make any meaningful difference, compared to the present state of country's economy and cost of living. That means a person earning Tk.13,750 and cannot afford to maintain his family with this poor amount of money is bound to pay income tax. What a ridiculous decision! This level of increase is not at all in line with the government increase of prices in other sectors and increase of cost of living. Recently, the government has increased its selling price of CNG from Tk 2.47 to Tk 9.97 per unit, that is more than 4 times higher than the previous price. The price of essential commodities, including rice, has increased nearly 100% during the last one year. But the income of the general people did not increase more than 10%. Under such a dangerous market situation, how far is it justifiable to increase the income tax ceiling by only Tk.15,000?
Moreover, the present rate of fixing income tax from 10% to 25% on different income groups is extremely unrealistic in our economic situation. In my opinion, the individual income tax should be imposed on a person earning an annual income of above Tk. 300,000. The income group of Tk. 300,001 to Tk.500, 000 should be imposed a flat rate of Tk. 10,000 annually. Because this income group is much higher among the middle class who can afford to pay income tax at this rate. The person who earns above Tk.500, 000 should pay income tax at 10% irrespective of his/her level of income. There should not be any differential rate like 15%, 20% and 25%. If it is so, the government's revenue earning will rise manifold. And I am sure there would not be any necessity for chasing defaulters. We, therefore, request the government to give serious attention to the matter and reconsider fixing the individual income tax in light of the above.
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