Processed food makers demand withdrawal of VAT and SD hikes
They warn of staging strict agitation if their demand not met
Leaders of the Bangladesh Agro-Processors Association demanded the withdrawal of the recently increased value-added tax (VAT) and supplementary duty (SD) on agro-processed food items, including biscuits, cake and juice.
They placed their demand in a meeting with National Board of Revenue (NBR) Chairman Abdur Rahman Khan at the NBR building in capital's Agargaon today.
"There will be pressure on the consumers as VAT has been increased by up to 200% on some products. A biscuit of Tk5 will become Tk7, a juice of Tk20 will cost Tk25 in the coming days due to the recent tax hike," Ahsan Khan Chowdhury, an executive member of the association, told journalists after the meeting.
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"I don't think there is a need to oppress the consumers of Bangladesh in this way," he said, adding, "We do not want any additional pressure, oppression or price hike on the consumers."
However, he also said they are hopeful that the NBR will withdraw the increased tax as the high officials showed a positive attitude regarding the matter.
The association, in a press statement signed by its General Secretary Iqtadul Hoque, states, "Consumers are grappling with persistent high inflation, which pushed them to reduce purchases. Amid this situation, besides the people, businesses are also concerned about the recent initiative (tax hike).
It said their leaders hope that the government will take necessary action to withdraw the hiked taxes. The NBR chairman was told that they will stage strict agitation if the decision is not changed.
The statement also reads, "If the price of gas is increased along with the VAT, it will not be possible to make biscuits, cakes for Tk5 and Tk10. As a result, low-income people will be further hurt."
The government on 9 January hiked VAT on biscuits, cake, sauce, chutney, tomato paste, and some other agro-processing items to 15% by twofold from 5%.
Additionally, SD was increased to 15% from 10% on fruit juice. And tax was also hiked on some other items to 7.5% from 5%.
