Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Saturday, June 9, 2018 11:02:01 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Middle income people will suffer due to the pressure of rising food inflation

By
10th-Jun-2018       
Comments
Share your thought
Post a comment »
Read all () »

THE Tk 464,573crore budget for the coming year has proposed the continuation of the existing tax-free income ceiling and tax rates for individuals and companies. News media quoting CPD's post-budget discussion reported that the budget will benefit the high- and low-income people, leaving the middle and lower middle-class people strained. It apprehends that policymakers do not feel the need to hear the voices of the largest population to the extent they feel necessary to pay attention to the poor for a vote and the affluent class for election finance. The proposed budget has asked for extending social safety net while VAT on various goods and services such as flats of up to 1,100-square feet, furniture, and clothes have been increased.
The rise in indirect tax by way of VAT will create a burden on the shoulders of middle and lower middle incoming people. Corporate tax for banks, financial institutions, and insurance companies has been slashed and the perquisite allowance has been raised to Tk 5.50 lakh from Tk 4.75 lakh, both of which will please high-income people. The CPD said the social safety net coverage that has been expanded in the proposed budget will address the issue of 'inclusivity of growth' but the medium- to long-term challenges such as inequality of both income and wealth, unplanned urbanization, and the other issues were ignored. The budget's lack of sensitivity towards the existing and emerging concerns such as the pressure on the balance of payment and exchange rate, inflationary expectations as well as scant attention to areas requiring reforms is upsetting.
Under the circumstance, a spike in VAT rates for goods and services, including advance trade VAT at the import and trading stages from 4 percent to 5 percent, will increase prices and thereby inflation, which is already creeping up. Inflation is likely to rise in the incoming fiscal year and would not be stable at 5.6 percent as projected in the budget.
A large number of lower- and middle-income people will come under the tax net for the first time next fiscal as the tax-free income limit has been kept unchanged for the fourth year now -- without considering the added pressure of rising food inflation and decreasing average monthly real wage. We endorse the CPD's suggestions to increase the tax-free income ceiling to Tk 300,000 and the first slab of tax rate should be fixed at 7.5 percent instead of 10 percent to ease the pressure on the lower middle-income families.


Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Budget to make commoners` life harder


The fat and lofty budget that was presented before lawmakers in Parliament on Thursday brought no good news for ordinary citizens and businesses but rather mounted pressure on taxpayers to meet the legendary thrust of corrupt bureaucrats and politicians and lockless state-owned banks' vaults.News media tagged the budget of Tk ...

Football »

Belgium`s Eden Hazard (center) is congratulated by teammate Belgium's Youri Tielemans after he scored his sides second goal during a friendly soccer match between Belgium and Egypt at the King Baudouin stadium in Brussels on Wednesday.


.

Entertainment »

Nipun now-a-days


Sheikh Arif Bulbon :Popular film actress Nipun has been engaged with her own business house, Tulip Nails & Spa for last three years. For this reason, she is not seen frequently to act on the screen. But she has intention to work in big screen if she gets good script. ...

City »

Henna festival held at Jatiya Press Club


UNB, Dhaka :A henna festival arranged by the Jatiya Press Club and Dhakabashi, a local club which works to uphold tradition and cultural heritage, was held at the Jatiya Press Club on Friday ahead of Eid-ul-Fitr.Addressing the programme as the chief guest Food Minister Advocate Qumrul Islam said "The government ...

International »

Trump says he will invite Kim to US if summit goes well


AFP, Washington :US President Donald Trump insisted Thursday he is "very well-prepared" for a historic and potentially fraught summit with Kim Jong Un in five days, while hinting at the signing of a peace treaty and even a future White House visit by the North Korean dictator.Hosting Japanese Prime Minister ...

Cricket »

Steve Rhodes new Head Coach of Bangladesh Cricket team


Sports Reporter :Steve Rhodes has been named new Head Coach of Bangladesh National Cricket team. President of Bangladesh Cricket Board (BCB) Nazmul Hasan finally disclosed this matter on Thursday.The 54-year old English Coach will contract with BCB up to 2020 ICC Twenty20 World Cup. Rhodes is going to take as ...

Entertainment »

Nadia busy with Eid telefilms, serials, TVC


Sheikh Arif Bulbon :Popular model, TV actress and dance artiste Nadia Ahmed is currently busy with the work of Eid special telefilms, serials and modelling on the occasion of the upcoming Eid-ul-Fitr. Nadia has finished modelling for fashion designer Nighat Imam’s Priyali Garden Boutique. She also worked in a TV ...

City »

Family Members of Raju Prodhan and dwellers of Tarabo pourashava of Rupganj upazila formed a human chain in front of the Jatiya Press Club on Thursday in protest against planned killing of Raju in the name of crossfire.


.

International »

Trump hosts Japan PM five days before summit with Kim


AFP, Washington :With less than a week to go before meeting North Korean leader Kim Jong Un, US President Donald Trump plays host Thursday to Japanese Prime Minister Shinzo Abe, who wants his voice heard ahead of the unprecedented talks.Trump and Abe will hold a joint press conference at the ...

Editorial »

Government must be liable for the billions of dollars flying out of the country


AT least 2.36 billion US Dollars are flying out of the country every year through the hands of some 34,340 expatriates working in Bangladesh. The expat foreigners who get the said amount in salary and allowances are mainly top level managers and administrators - mostly catering to the needs in ...

Sports »

Maria Sharapova dumped out of French Open 2018 by inspired Garbine Muguruza


Maria Sharapova's French Open comeback was ended in straight sets by ruthless Garbine Muguruza.Sharapova, back on the Paris clay having missed the last two tournaments due to a doping ban, was swept aside 6-2 6-1 by Spanish third seed Muguruza.The two former Paris champions had not been inconvenienced by too ...

City »

Outgoing Air chief, new Air chief meet PM


Both outgoing Air chief Marshal Abu Esrar and its new chief Air Marshal Masihuzzaman Serniabat on Wednesday paid a courtesy call on Prime Minister Sheikh Hasina at her Jatiya Sangsad office.Air Marshal Masihuzzaman Serniabat will take over the command of the Bangladesh Air Force (BAF) on June 12 next for ...

Entertainment »

Sonia to host Vision Football Mania in World Cup


Sheikh Arif Bulbon :Sonia Hossain is a viewers’ choice popular actress, model and host. Though she was earlier engaged with modeling and acting now Sonia is giving time to hosting. However, during her wedding ceremony she informed after getting married she will be engaged with hosting only. She is enjoying ...

International »

Singapore airspace to be restricted during US-North Korea summit


Reuters , Singapore :Singapore:  Singapore airspace will be restricted during the planned U.S.-North Korea summit next week, according to a notice to airmen posted by aviation authorities on Wednesday.The Southeast Asian city-state is set to host an historic meeting between U.S. President Donald Trump and North Korean leader Kim Jong ...

Back Page »

I'tikaf


Abdul Muqit Chowdhury :The days of Maghfirat (forgiveness) conclude with 20th day of fasting. The third part of Holy Ramzan, called Nazat (salvation) begins on the 21st. I'tikaf is a special worship and part of Sunnah. The period of I'tikaf begins before the sunset of the 20th Ramzan and it ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news