Traders Demand Accurate Info On Edible Oil, All Essential Goods

Traders have strongly demanded the government ensure accurate information regarding edible oil and all essential goods. They alleged that instead of focusing on long-term reforms, the Interim Government has increased VAT and supplementary duties following the recommendations of the International Monetary Fund (IMF).

Traders made this allegation at a roundtable discussion organized at the Metropolitan Chamber's Gulshan office on Wednesday (February 12) afternoon.

The National Board of Revenue (NBR) has set a target to collect nearly Tk 5 lakh crore in taxes for the current fiscal year. However, by December, tax collection fell short by Tk 42 thousand crore compared to the target. In an attempt to bridge this gap, NBR imposed higher VAT and supplementary duties on over a hundred products last month, although some of these tax hikes were later withdrawn.

Traders argued that the increased VAT and supplementary duties on items ranging from fruits and clothing to various bakery products would further fuel inflation. They pointed out that the public has been struggling with high inflation for the past two years. Given the situation, they urged the government to focus on increasing direct taxes instead of relying on indirect taxes.

M.A. Hashem, President of the Bangladesh Agro Processors Association (BAPA), criticized the move, stating, “If VAT and taxes continue to rise, businesses will slow down. How will the government generate revenue then? The authorities do not take traders into consideration; they impose VAT and taxes arbitrarily from air-conditioned offices.”  

Zakir Hossain, General Secretary of the Super Shop Owners Association, remarked, “Whoever goes to Lanka becomes Ravan. The current government is acting similarly, imposing VAT without considering public interest.”  

The country's largest industrial sector, the garment industry, also raised concerns, claiming that they often face harassment under the guise of tax collection. Additionally, they alleged that extortion contributes to rising market prices.  

Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), highlighted the recent edible oil crisis during the discussion. He stressed, “The government must have clear data on imported goods, including edible oil, and their supply chain to ensure market stability.”  

Dr. Khondaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), pointed out, “There is no accurate data on how much soybean oil is being imported and marketed, which is why market management remains unstable.”