The Bangladesh Agro Processors Association has called on the government to withdraw the increased VAT and taxes on processed food products and cancel the proposed gas price hike within seven days.
At a press conference in Dhaka on Thursday, BAPA representatives stated that these measures would harm labourers, marginal farmers and low-income groups, while pushing essential food items like biscuits, cakes and juices out of consumers鈥� reach, according to a press release.
The resulting drop in demand could lead to the closure of many food processing factories, putting about 2,50,000 workers at risk of unemployment.
The association also warned that a gas price hike would escalate production costs, making exports less competitive and jeopardising vital international markets. Such moves, they argued, would weaken the economy rather than boost government revenue.
If their demands are not met, BAPA members plan to suspend factory operations and hold a peaceful rally in front of the Bangladesh Secretariat. They also aim to meet with the chief advisor of the interim government to discuss the potential consequences directly.
The National Board of Revenue recently increased VAT and supplementary duty on over 100 goods and services, including agro-processed items.
The VAT on machine-made biscuits, cakes, pickles and various fruit products was raised from 5 per cent to 15 per cent. Fruit juices and flavoured drinks now face a supplementary duty of 15 per cent, up from 10 per cent or zero. Additionally, merchant-level taxes rose from 5 per cent to 7.5 per cent.
BAPA president MA Hashem criticised these measures, stating, 鈥楾he government claims the impact will be minimal, but the reality is stark. Increased VAT and gas prices will make it impossible to produce low-cost items like a Tk 5 biscuit, worsening the struggles of low-income groups.鈥�
PRAN-RFL Group chief executive officer Ahsan Khan Chowdhury added that rising costs would deter consumers from buying agro products, adversely affecting mango, banana and tomato farmers.
BAPA general secretary Iqtadul Hoque and other industry leaders were also present at the press conference.
