Chittagong Hill Tracts residents resist proposed income tax inclusion

A proposal to include ethnic minority communities in Bangladesh's Chittagong Hill Tracts within the income tax net has ignited strong opposition from local leaders and residents. The Finance Bill, presented on June 10, seeks to amend Section 19 of the Sixth Schedule of the Income Tax Act, 2023, to bring these groups under taxation.

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Many members of our hill communities live outside the Chittagong Hill Tracts, holding government or NGO jobs and achieving financial self-reliance; they do pay income tax. Those of us residing within the hill region wish to remain exempt from this. The hill region is a special area, and the sources of income for its people are limited. Therefore, we want all economic activities taking place in the Hill Tracts to be kept free from income tax.

Community leaders are urging the government to reconsider, emphasizing the unique circumstances of the region. Mathura Bikash Chakma, an indigenous researcher and social activist, noted that while some community members living outside the hill tracts and holding government or NGO jobs do pay income tax, those residing within the region wish to maintain their exemption. He stressed that the hill region is a special area with limited income sources, advocating for all economic activities there to remain tax-free.

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it would be unfortunate if the residents of the region were brought under the tax net, given the very limited income of the people living there.

Concerns are mounting over the potential economic impact on residents. Juamlian Amlai, Bandarban convener of the Chittagong Hill Tracts Forest and Land Protection Movement Committee, called it "unfortunate" to tax people with very limited incomes. Shanti Bijoy Chakma, general secretary of the CHT Headman Network, highlighted that successive governments, dating back to the British colonial era, have upheld tax-exempt privileges for the hill tract residents. He expressed dismay that the current government appears unwilling to continue this tradition.

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Successive governments dating back to the British era have maintained tax-exempt privileges for the people living in the Hill Tracts. However, the current government appears unwilling to uphold this, which is certainly not welcome news for us.

Dipen Dewan, a member of parliament for Rangamati and former minister of Chittagong Hill Tracts Affairs, has demanded the withdrawal of the proposed amendment. He pointed out that jhum cultivation and agriculture are the primary income sources for most people in the region, which lacks the extensive agricultural land found in the plains. Furthermore, he stated that 80 percent of the region's population is deprived of basic civic amenities, making the continuation of tax exemption benefits essential for the population.

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Jhum cultivation and agriculture are the primary sources of income for the majority of people in the Hill Tracts region. Unlike the plains, the Chittagong Hill Tracts lack vast stretches of agricultural land. Eighty percent of the people in the region remain deprived of basic civic amenities. Given these circumstances, it is necessary to maintain the tax exemption benefits for the population.