NBR should consider raising the tax-free income threshold levels due to Covid-19 impact on economy, says CPD

The Centre for Policy Dialogue (CPD) has proposed to increase the ceiling of tax-free income for individual taxpayers to Tk3.5 lakh from Tk2.5 lakh for the next fiscal year amid the economic downturn due to coronavirus pandemic.

The proposal was presented at a press briefing today on the budget of fiscal year 2020-21.

CPD said, "National Board of Revenue (NBR) should consider raising the tax-free income threshold levels from Tk.250,000 to Tk.350,000. "

"It may also consider restructuring the first three slabs of income tax from 10, 15, and 20 percent to 5, 10, and 15 percent respectively, at least for next two years."

During the virtual press briefing from the CPD head office, the organization has proposed a major allocation on health sector in the next budget.

However, special allotment for agricultural sector was also suggested.