No assurance of VAT cut on processed food, prices may rise
Processed food items are likely to become costlier due to last month's tax hikes, with businesses in the sector hinting at price adjustments to sustain operations.
Entrepreneurs held a meeting today with the chairman and senior officials of the National Board of Revenue (NBR), demanding the withdrawal of value-added tax (VAT) on these products.
However, no assurance was given regarding a VAT reduction. Given the situation, business owners indicated that prices might need to be raised to sustain their operations.
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In response to journalists' questions after the meeting, Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, said, "The meeting was not fruitful. They (NBR) are asking for time from us and requesting us to wait until the next national budget."
MA Hashem, president of the Bangladesh Agro-Processors Association, said, "If this issue is not resolved within a few days, we will be forced to increase product prices. How long can we continue to bear losses?"
He explained, "When prices rise, consumers suffer. Our sales decrease, which in turn reduces tax revenue… and affects the entire economy."
He added that they had conveyed this concern to the NBR chairman and hoped for a positive resolution.
Md Shafiqur Rahman Bhuiyan, president of the Bangladesh Auto Biscuit and Bread Manufacturers Association, Sheikh Shamim Uddin, chairman of Akij Ventures, and Saif Nasir, managing director of SMC Enterprise, were also present at the meeting.
On 23 January, sector leaders had met with senior officials of the NBR and demanded the withdrawal of the increased VAT.
