The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) today urged the government to raise the tax-free income limit for individual taxpayers to Tk 4 lakh from Tk 3 lakh in the next fiscal year.

The apex trade body made the recommendation in view of higher inflation and the overall economic situation.

The FBCCI proposed it at a consultative committee meeting it organised jointly with the National Board of Revenue (NBR) at the Pan Pacific Sonargaon hotel in Dhaka. The meeting discussed issues of businesses ahead of the formulation of the national budget for 2023-24, which begins on July 1.

The proposal comes at a time when inflation in Bangladesh remains high. For the second consecutive month, inflation rose in March.

Consumer prices climbed to a seven-month high of 9.33 per cent in March as food prices jumped and the adjustment of oil, gas, and electricity prices took hold, highlighting the pains low-income households are going through.

Several businesses and professional bodies have already recommended hiking the tax-free income ceiling.

The NBR has maintained the tax-exempted income threshold at Tk 3 lakh since 2020-21 although the cost of living has gone up significantly since then.