The proposed budget for 2018-19 will put tax pressure on middle class and it did not address the growing inequality in the country.
For the next fiscal, the government estimated 7.8 per cent growth rate and Tk 1,170 billion private sector investment will be needed to achieve it.
It would be a big challenge to mobilise such big amount of investment considering the election year and bad shape of the banking sector.
Dhaka-based think tank Centre for Policy Dialogue made the obersations at a budget analysis programme held at a city hotel Friday.
CPD Executive Director Fahmida Khatun presided over the programme where Distinguished Fellows Mostafizur Rahman and Debapriya Bhattacharya, Research Director Khandker Golam Moazzem and researcher Toufiqul Islam and others attended.
The think tank said inflation rate is estimated at 5.6 per cent but it would be very difficult to contain it within the limit.
In the presentation, CPD pointed out that the registration cost for less than 1,100 square-foot apartment was 1.5 per cent while for bigger flat of over 1,600 was 2.5 per cent.
But, in the budget the government proposed a uniform flat rate of 2 percent registration cost for all flats and the decision will increase the expenditure of the middle class.
The burden on the middle class would have been reduced had the tax-free ceiling raised at Tk 3 lakh from Tk 2.5 lakh, said CPD.
About the inequality, he said Khulna, Barishal and Rajshahi are relative less developed that Dhaka, Sylhet and Chattagram divisions and there is no visible steps to address the growing inequality.
The think-tank is of the view it have negative impact by imposing 5 percent VAT on virtual business.
Debapriya Bhattacharya said, it will make a dent on the growing employment opportunity in the sector.
He pointed out that imposing tax on Uber or Pathao will ultimately be borne by the consumers.
The economist made a critical observation that income of poor is gradually decreasing while earning of rich is increasing and the bigger portion of the soceity is not getting the benefit of the development.
The think-tank vehenmently opposed the government move to reduce corporate tax on banks and financial institutions as it will only provide benefit to the owners, but borrowers and depositors will not get any benefit.
They proposed that the government should take steps to recover the loans, which were sanctioned using influence.
It criticised only 2 per cent allocation for the eductaion sector while the seventh five-year plan estimated 7.8 per cent investment.
With this amount of money, the country will have serious problem in producing quality workforce which will be required to cater to the need of the developing Bangladesh.