Withdraw gas price hike proposal, increased VAT, taxes urgently

The Anti-Discrimination Reform Council of the country's apex trade body on Tuesday demanded withdrawal of the increased VAT and taxes imposed on over 100 products, and the gas price hike proposal.
The council of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) termed the measures "suicidal" and urged the government to withdraw these immediately for averting severe economic setbacks.
Convenor of the council Zakir Hossain Nayan made the call at a press conference at the National Press Club as he presented a paper, portraying potential adverse impact of the proposals on the economy.
According to the paper, the VAT hike would disproportionately impact ordinary citizens, while the increase in gas prices would hinder economic progress.Former FBCCI Vice President Abul Quasem Haider criticised the unelected government's authority to impose such decisions, describing it as overstepping its mandate.
"Such moves are pushing industries towards disaster. The government appears increasingly weak, with citizens losing purchasing power daily," he added.
Mr Haider also accused the administration of fostering corruption, claiming that bribery was rampant at all levels, from secretaries to lower officials.
"A lack of action against bribery is equivalent to enabling it, which is equally condemnable," he said.
Abdul Haque, President of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA), expressed his frustration over high-interest rates and said the current 16 per cent rate is unsustainable for businesses. "Interest rates must be reduced to single digit to ensure a business-friendly environment."
However, the paper pointed out that the government has ignored the cumulative burden of high exchange rates, soaring import costs, and global economic challenges on businesses while taking such decisions.
It warns that the sudden imposition of higher taxes and hike in gas prices would exacerbate inflation and hinder national economic recovery efforts.
Mr Nayan criticised the increase in VAT on essential items and services like restaurant bills, supermarket sales, imported fruits, mobile phone services, internet, tissues, LPG, and clothing. "Even life-saving medicines are now subject to higher taxes which is absolutely unacceptable."
He further said the turnover tax threshold for small and medium businesses had been reduced, increasing the financial burden on marginal traders.
Traders, however, urged the government to explore alternative revenue-generation methods instead of overburdening the taxpayers.
Expanding tax coverage, reducing wasteful government expenditure, and ensuring transparency can help increase revenue without raising tax rates, the FBCCI members said.
The business leaders also called for reconsidering the measures and emphasised that the policies must prioritise economic stability and the welfare of common people.
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