Budget Reactions: Black money amnesty rejects July movement’s ethos: CPD

Staff Reporter :

The Centre for Policy Dialogue (CPD) on Tuesday raised serious concerns over the proposed national budget for the fiscal year 2025-26, stating that it falls short of fostering an equitable society – an imperative, particularly in the context of the anticipated political transition in July.

Speaking at a press briefing titled “CPD’s Review of the National Budget 2025-26” held in the capital, CPD Executive Director Dr Fahmida Khatun criticised the government’s move to legitimise undisclosed income, arguing that it undermines the principles of fairness and contradicts the ideals of the July Movement.

“The provision to legalise black money discourages honest taxpayers and sends the wrong message at a time when transparency and accountability should be prioritised,” Dr Khatun said. The think tank also highlighted ongoing inequalities in the taxation system. Dr Khatun noted that the proposed budget was expected to focus on public welfare and inclusive national development, rather than placing emphasis primarily on economic growth and infrastructure.

“Regrettably, the budget presented by the Economic Adviser does not reflect these priorities,” she remarked.
On the proposed adjustment to the tax-free income threshold-from Tk 3.5 lakh to Tk 3.75 lakh-CPD observed that the benefit would be minimal due to delayed implementation, which is scheduled for fiscal years 2026-27 and 2027-28. Given current and projected inflation levels, this change would offer little relief to taxpayers, the organisation said.

CPD further warned that the tax burden will continue to disproportionately impact lower-middle and middle-income earners, particularly those with annual incomes between Tk 6 lakh and Tk 16 lakh. Meanwhile, individuals earning more than Tk 30 lakh annually are likely to benefit from comparatively lenient tax rates, reinforcing systemic inequality, CPD argued.

Calling the government’s 6.5 per cent inflation target “overly optimistic,” Dr Khatun pointed to current economic indicators that suggest maintaining such a target will be extremely challenging.
Addressing revenue projections, CPD Distinguished Fellow Dr Mustafizur Rahman said the ambitious targets were unlikely to be met due to the absence of substantial reform within the revenue administration.

“It appears that the government has ceded significant control over budget formulation to the revenue department,” he stated.

While acknowledging that trends such as increasing public debt, tax inequality, and reliance on growth projections were somewhat expected, CPD said these remain deeply troubling and unaddressed.