48% tax hike a trap for middle class: Akhtar

National Citizen Party (NCP) lawmaker Akhtar Hossain has criticised the proposed 2026-27 national budget, saying a 48% increase in income tax would become a "death trap" for the middle class.

Speaking during the budget discussion in the 13th Parliament on Wednesday, the Rangpur-4 MP said the proposed tax measures would put additional pressure on low and middle-income people and could hurt economic growth.

Akhtar said the income tax rate on the first taxable slab has been doubled from 5% to 10%, which would directly affect people with limited earnings.

He gave an example, saying a person earning Tk35,000 per month who previously paid around Tk420 in tax would now have to pay about Tk620, representing a significant increase in the tax burden.

Criticising the government's borrowing plan, the lawmaker said the proposed budget could discourage private investment. He said the government plans to borrow around Tk1.12 lakh crore from domestic banks, which could reduce the availability of loans for the private sector.

Akhtar also raised concerns over the impact of advance taxes on small businesses. He said small traders, including rural shopkeepers, would have to pay a 0.2% advance tax when purchasing goods, even before selling products or making profits.

"If taxes are collected before businesses earn any income, small entrepreneurs will face serious difficulties," he said.

The NCP lawmaker also criticised the allocation for agriculture, saying the sector had not received adequate attention in the proposed budget.

He called for greater emphasis on investment, employment generation and inclusive economic growth to ensure sustainable development.

TZ