The existing tax structure places a disproportionately heavy burden on low-income earners, and the tax-free income threshold proposed in the budget for fiscal year 2026–27 should have been raised further, according to the Centre for Policy Dialogue (CPD).

The independent policy research organisation said the newly proposed tax-free income threshold is insufficient to provide meaningful relief to lower-income groups amid persistently high inflation.

The observations were made at a post-budget review briefing organised by CPD at a hotel in Gulshan, Dhaka on Friday. The event was addressed by CPD Executive Director Fahmida Khatun and attended by Distinguished Fellow Mustafizur Rahman.