Taxing the poor's bread: Industry slams VAT on bread, biscuits as 'national embarrassment'
“If the government does not accept our demands, we will take strict action. We will be forced to increase the price or reduce the quantity,” Bangladesh Auto Biscuits and Bread Manufacturers Association Shafiqur Rahman Bhuiyan says
The Bangladesh Auto Biscuits and Bread Manufacturers Association has called the imposition of an additional VAT on bread and biscuits — a staple food for labourers and students — "a national embarrassment."
At a press conference held at the Dhaka Reporters Unity in the capital, today (23 August), Shafiqur Rahman Bhuiyan, the association's president, alleged, "The government has upheld the VAT on food for ordinary people, ignoring reports from the World Bank, research findings, and criticism from economists.
"At the same time, VAT has been withdrawn from supermarkets. Why is there a tax on the bread of the poor but a tax exemption for the rich? If necessary, the government should directly increase the tax on companies, not on the food of the poor. We no longer want to be a tool for the government to collect VAT."
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He warned, "If the government does not accept our demands, we will take strict action. We will be forced to increase the price or reduce the quantity."
He highlighted that under the previous government, VAT on bread and biscuits was 5%, but the interim government increased it to 7.5%, raising production costs.
Vice President Shakhawat Hossain Mamun added that research shows workers and students rely on bread and biscuits daily, and that exploiting the poor to collect revenue is retrogressive, particularly as Bangladesh is classified in the "red zone" for food security.
He added that while the prices of raw materials (wheat, sugar, and palm oil) have risen, companies have not yet increased product prices or reduced packet sizes. He said it would be impossible for them to continue if the VAT remains in place.
The association demanded the full withdrawal of VAT, warning that continued taxation could harm the industry, raise consumer prices, and damage the government's public image.
Also present at the press conference were Assistant Vice President Indrajit Sarkar and Kishwan Food Industries General Manager Abdur Rahman.
