Govt decision to increase VAT suicidal: DCCI
“Reduce government expenses instead of burdening the businessmen. If the government reduces its expenses by 20%, at least Tk50,000 crore will be saved,” says the chamber’s president
The interim government's decision to increase value-added tax (VAT) and supplementary duty (SD) on more than 100 products is suicidal and will have a negative impact on the people, said Dhaka Chamber of Commerce and Industries (DCCI) President Taskeen Ahmed today (11 January).
"The entire cost of this increase in VAT and SD will fall upon the people, which will hamper national and international investments and trade," he told a press briefing at Motijheel in the capital.
Senior leaders of DCCI were present at the press briefing, where Taskeen also presented the chamber's plans for 2025.
Saying the government was imposing the VAT and SD on the private sector, the DCCI president urged the government to disclose its annual expenses.
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"Reduce government expenses instead of burdening the businessmen. If the government reduces its expenses by 20%, at least Tk50,000 crore will be saved, which it will be able to use to cover budget expenses," he said addressing the government.
"We do not understand how the government will keep inflation down by raising VAT," he added.
Criticising the government's initiative to raise the price of gas by 150%, Taskeen said that gas prices increased by 200% in the last three years.
"In total, the price of gas is set to increase by nearly 400%. We cannot make the same amount of profit magically. We are yet to get 60-65% supply of the total demand for gas. The gas price hike on top of that will hamper businesses," he added.
During the event, the DCCI president also said they do not want the economy and politics of the country to come under one platform.
"Economy and politics must remain separated. Businessmen can enter politics, but politics should not enter the business," he further said.
