Wednesday, 22 January, 2025
Leaders of the Chattogram chapter of the Bangladesh Sweets Manufacturers Association have given the interim government seven days to roll back the value-added tax, or VAT, imposed on sweets and bakery products.
They warned of large-scale protests if the government does not act within the specified period.
At a human-chain demonstration at the Chattogram Press Club premises on Saturday noon, the association's President Shahidullah Quraishi said: “If this sector collapses, millions will be unemployed, and it will lead to a massive shortfall in foreign currency earnings, as many products from this sector are exported abroad.”
He added, “We have always complied with government laws, paying VAT and taxes regularly.
“Yet, some malicious groups are trying to turn the current industry into ailing one."
Shahidullah highlighted the rising costs of utilities such as gas, electricity, and water, along with the ongoing increases in raw material prices like flour, powdered milk, sugar, and oil.
“Many factories have already shut down, and more are on the brink,” he said.
The industry leader reiterated the long-standing demand for the VAT rate to be reduced to 5 per cent or lower, calling for the withdrawal of the 15 per cent VAT.
“If the government does not meet our demands within the next seven days, we will announce a major protest.”
Recently, the Muhammad Yunus-led government raised VAT on over 100 products and services, including sweets and bakery items.
VAT on consumer goods increased from 5 per cent to 15 per cent, while for businesses, it went up from 5 per cent to 7.5 per cent.
Sweets and bakery products are among the affected items.
Md Kofil Uddin, general secretary of the association’s Chattogram division, believes the price increase would affect the lower and lower-middle class people the most.
He said, “Most of our products cater to the lower and lower-middle classes. If VAT and other costs increase, these items will become unaffordable for them, creating a crisis.
“This could lead to a humanitarian disaster.”
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Leaders of the Chattogram chapter of the Bangladesh Sweets Manufacturers Association have given the interim government seven days to roll back the value-added tax, or VAT, imposed on sweets and bakery products.
They warned of large-scale protests if the government does not act within the specified period.
At a human-chain demonstration at the Chattogram Press Club premises on Saturday noon, the association's President Shahidullah Quraishi said: “If this sector collapses, millions will be unemployed, and it will lead to a massive shortfall in foreign currency earnings, as many products from this sector are exported abroad.”
He added, “We have always complied with government laws, paying VAT and taxes regularly.
“Yet, some malicious groups are trying to turn the current industry into ailing one."
Shahidullah highlighted the rising costs of utilities such as gas, electricity, and water, along with the ongoing increases in raw material prices like flour, powdered milk, sugar, and oil.
“Many factories have already shut down, and more are on the brink,” he said.
The industry leader reiterated the long-standing demand for the VAT rate to be reduced to 5 per cent or lower, calling for the withdrawal of the 15 per cent VAT.
“If the government does not meet our demands within the next seven days, we will announce a major protest.”
Recently, the Muhammad Yunus-led government raised VAT on over 100 products and services, including sweets and bakery items.
VAT on consumer goods increased from 5 per cent to 15 per cent, while for businesses, it went up from 5 per cent to 7.5 per cent.
Sweets and bakery products are among the affected items.
Md Kofil Uddin, general secretary of the association’s Chattogram division, believes the price increase would affect the lower and lower-middle class people the most.
He said, “Most of our products cater to the lower and lower-middle classes. If VAT and other costs increase, these items will become unaffordable for them, creating a crisis.
“This could lead to a humanitarian disaster.”
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