Staff Reporter

Centre for Policy Dialogue (CPD) urged the government to cut tax on essential commodities at both import and domestic stages to contain the rising trend of inflation.

The economic think tank also emphasised on coordination of fiscal measures with the monetary policy to lead the sustainable growth of the economy.

CPD Executive Director Dr Fahmida Khatun placed the recommendations at a press briefing at Lakeshore Hotel in Dhaka on Friday. CPD Distinguish Fellow Dr Mustafizur Rahman, Research Director Dr Khondaker Golam Moazzem, Senior Research Fellow Towfiqul Islam Khan and Syed Yusuf Sadaat were also present on the occasion.

The economic think tank critisised the government move to declare amnesty to the money launder to legalise asset from abroad.

"Those who siphoned off money abroad, they will not bring back the asset. The step will recognise money laundering," said Dr Fahmida.

Dr Fahmida also raised question about the projected inflation target of 5.6 percent as policy measures absence in the budget.

The economist requested the government to allocate adequate resources for subsidies for keeping the administered prices of petroleum products, electricity, gas, and fertiliser.

In the reaction, CPD suggested for giving tax relief to middle income group and expanding social safety net in terms of coverage and per capita allocation. "We suggested for increasing the ceiling of tax free income limit to Tk 3.5 lkah to give relief to the low income group," she added.

Finance Minister AHM Mustafa Kamal placed the lofty budget worth of Tk 6.78 trillion for fiscal year 2022-23 at the national parliament on Thursday.