‘VAT, duty hike decision is suicidal for the economy’
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photo: Barta24
High exchange rate of foreign currency, increase in import costs, high energy costs, high interest rates and global influence are having a negative impact on the country’s investment. In this situation, business leaders have commented that the decision to increase VAT and supplementary duty without any exchange of views with stakeholders will be suicidal for the country’s economy.
Business leaders said these things at a press conference organized by the Anti-Discrimination Reform Council (FBCCI) at the Abdus Salam Hall of the National Press Club on Tuesday (January 14) to ‘protest the proposal to increase value-added tax and supplementary duty on goods and services and increase gas prices outside the rules’.
Zakir Hossain Nayan, convener of the Anti-Discrimination Reform Council (FBCCI), read out a written statement at the press conference. He said that Bangladesh is currently going through a difficult economic challenge. Meanwhile, we have noted with concern that the government has published a gazette notification on January 9, 2025, increasing the value-added tax (VAT) and supplementary duty on more than a hundred goods and services in the middle of the current 2024-2025 financial year. We, on behalf of the business community, express deep concern over the increase in VAT and supplementary duty without consulting the stakeholders. The government has also taken initiatives to increase the price of gas. This sudden imposition of tax and the proposal to increase the price of gas will have a huge negative impact on the overall national economy of the country. Zakir Hossain said that in addition to increasing VAT by 10 percent on all types of restaurant bills, VAT has also been increased on sales in shops and supermarkets. This will affect all the lower and middle class. Moreover, VAT has also been increased at different rates on imported fruits, mobile phone services, internet, tissues, LPG gas, clothing, etc. Since these products and services are an integral part of life, the additional tax increase will put pressure on people of all income levels. VAT has also been increased on life-saving medicines, which is not desirable in any way.
Apart from the written statement, Zakir Hossain Nayan said, such a decision to suddenly increase VAT and supplementary duty in the middle of the fiscal year will be suicidal for the economy and will discourage investment. You have called on investors to invest, but you cannot increase VAT and supplementary duty in the middle of the fiscal year, which is also immoral. You all know how much loot has been done in the financial sector in the last 15 years. Thousands of crores of taka have been smuggled out of the country. Now, at this moment, we, businessmen from every sector, are suffering it every moment in different ways. Within that suffering, we oppose the immoral increase in tax and VAT in the middle of the fiscal year like a 'scum on the dead'. We strongly condemn it. So you should not do this immorally in the middle of the fiscal year.
Former FBCCI President Abul Kasem Haider said, "Now that the prices of goods in the market are on the rise, why did they (the government) impose taxes at this time? It is completely inappropriate. The government is not able to negotiate with the IMF and is now putting the burden of taxes on our shoulders."
Abdul Haque, Assistant Associate Administrator of FBCCI and President of Barvida, said, "Those who have looted and laundered money should be told that they have to return 80 percent of the amount they looted and laundered. Otherwise, they will be brought under strict punishment," he said.
Also present at the press conference were Bangladesh Restaurant Owners Association President Md. Osman Gani, FBCCI member Atiqur Rahman and others.
