CPD Flags Concerns Over Tariff Reforms, Social Safety Allocation in FY 2025–26 Budget

Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), cautioned that certain industries will come under pressure due to the proposed tariff rationalization in the 2025–26 national budget. Speaking at a press conference on June 2, she acknowledged the move as necessary but stressed that the government must act to lower the cost of doing business to mitigate its impact.

Dr. Khatun criticized the provision to legalize black money, calling it unjust and ineffective in generating meaningful revenue. She warned that such policies undermine fairness for law-abiding taxpayers.

On social safety nets, she noted that the apparent increase in allocation is misleading, as it includes pensions and agricultural subsidies. Stripping these out reveals that actual investment in social protection remains low, falling short of the budget’s stated goal of building an inclusive society.

She also expressed concern over the reduced Annual Development Programme (ADP) allocation for critical sectors like education, health, and agriculture, and remarked that the government’s long-term revenue generation goals lack credible implementation strategies.

While welcoming the rise in the tax-free income threshold to Tk 375,000, Dr. Khatun noted that its real benefit would be limited once adjusted for inflation. CPD’s Distinguished Fellow Dr. Mostafizur Rahman and Research Director Dr. Khondaker Golam Moazzem also participated in the discussion.

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