Dhaka Chamber of Commerce and Industries (DCCI) President Taskin Ahmed has urged the government to reduce expenses by 20 per cent to save Tk 50,000 crore and avoid burdening businesses with increased value-added tax (VAT), supplementary duty (SD), and gas prices, reports UNB.
Speaking at a press event at Motijheel in Dhaka, he criticised the government's decision to raise VAT and SD on over 100 products and services through two ordinances issued Thursday night.
The hikes, effective immediately, have increased costs on essentials such as mobile usage, clothing, restaurant dining, LP gas, and more.
Ahmed called the move "suicidal," warning it would harm national and international trade, raise inflation, and deter investments.
He also expressed concern over the proposed gas price hike of 150 per cent, noting industrial users would pay Tk 75.72 per cubic metre beyond their sanctioned load compared to the current flat Tk 30.75. Gas prices have already increased 200 per cent in the last three years, and further hikes would severely impact businesses struggling with insufficient supply.
Ahmed stressed the need to separate politics and the economy, urging businessmen in politics to avoid politicising business affairs.
He highlighted Bangladesh's economic challenges, including limited foreign exchange reserves, rising energy costs, inflation, and high interest rates, compounded by global geopolitical instability.
The DCCI plans to prioritise controlling inflation, stabilising foreign exchange rates, and reducing interest rates this year. Ahmed called for expedited low-cost financing for the CMSME sector, which is critical for employment generation.
On LDC graduation, Ahmed acknowledged setbacks from the Covid-19 pandemic, the Russia-Ukraine war, and local political unrest. He urged detailed stakeholder discussions to assess readiness and suggested deferring the timeline if necessary.
He also emphasised increasing the tax-GDP ratio and expanding the taxpayer base while urging the government to cut unnecessary projects, adopt austerity measures, and improve monitoring of ADP implementation.
DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman, and other board members attended the event.
