Traders in the agro-processing sector have called for the withdrawal of the increased VAT and customs duties on processed food products. Traders in this sector have warned of taking to the streets with movement if initiatives are not taken to withdraw VAT and taxes within 7 days. At the same time, they called for the withdrawal of the proposal to increase gas prices, calling it against the interests of consumers.
The traders said this at a press conference organized by the Bangladesh Agro Processors Association (BAPA) at the Dhaka Club in the capital on Thursday. Present were - BAPA general secretary Iqtadul Hoque, ACI Agro Business president Dr. FH Ansari, managing director of SMC Enterprise Saif Nasir, president of Bangladesh Biscuit and Bread Association Shafiqur Rahman Bhuiyan, director of Akij Foods and Beverage Syed Zahurul Alam, chief operating officer of Square Food and Beverage Parvez Saiful Islam, managing director of Kishwan and Bonful Shahidul Islam, and directors and top officials of various companies in the agro-processing sector.
The speakers said that if the burden of VAT and taxes is imposed on processed food products, the marginal farmers and low-income people of the country will be affected. At the rate at which VAT has been increased, various food products including biscuits, cakes, juices, which are the daily food of the common people, will go beyond the purchasing power of consumers. And if consumers lose purchasing power, most of the processed food factories will close.
Ahsan Khan Chowdhury, chairman and chief executive officer (CEO) of PRAN-RFL Group, said, "We process various agricultural products from marginal farmers and make juices, drinks, pickles, sauces. VAT on products like tomatoes, mangoes, pineapples, guavas and banana pulp has been increased from 5 percent to 15 percent. This will greatly affect marginal farmers. Now, if the prices of these products increase due to the increase in VAT and gas prices, many will refrain from buying these products. If factories are closed due to this, uncertainty will come to the lives of many workers.”
At the press conference, BAPA President MA Hashem said the government is saying that increasing VAT and taxes will not have much impact. But the reality says otherwise. If we look at the culture of the people of the country, many low-income people spend their mornings eating a cup of tea, a biscuit or a cake from tea shops. Now, if the price of gas increases along with the increase in VAT on biscuits and cakes, it will no longer be possible to make a biscuit by Tk 5. As a result, low-income people will easily lose the way to satisfy their hunger.
The president of BAPA said the government has been told that revenue will increase only if taxes are increased, but this is not true. If VAT is increased on food products, the purchase and sale will decrease. This will harm traders. Therefore, we request the government to save our industry. This government is the hope of countless people. If VAT is not withdrawn, we will take to the streets. We will stop production. If VAT is increased, our business will automatically stop.
Bd-pratidin English/Lutful Hoque
