Soft drink prices may rise

The country's soft drink trade has been impacted by extreme heat and shifts in international politics, leading to a 25% increase in sales compared to last year. However, due to inadequate preparation, the production company is struggling to meet demand on time. Consequently, there is a possibility of a price hike for the popular product in the upcoming 2024-25 fiscal year budget.

According to sources from the Ministry of Finance and the National Board of Revenue (NBR), there's a possibility that the minimum tax rate on carbonated beverages will rise from 3 percent to 5 percent in the upcoming fiscal year.

On condition of anonymity, a senior official from the NBR informed Views Bangladesh, "Sales of soft drinks have increased significantly. But the health risks associated with consumption of these drinks are also increasing. The NBR had also lowered the minimum tax rate on beverages last year, but the anticipated benefits for the public have not materialized. Instead, it seems that the profits have gone into the pockets of traders."

"There is mounting pressure on the NBR to boost revenue collection. As it's not feasible to increase taxes across all sectors, the focus should be on sectors where revenue can be effectively collected," he added.

Earlier, manufacturers including Transcom Beverages, Pran, Abdul Monem, and Coca-Cola Bangladesh, had requested that the minimum tax on soft drinks be increased to a maximum of 1 percent.

Those vested in the industry anticipate that within the next three to four years, both foreign direct investment and domestic investment in this sector will total around Tk10 billion. Additionally, approximately 350,000 employment opportunities have been generated directly and indirectly across various stages of this sector. Raising the tax rate at this juncture is deemed counterproductive for the nation's economy, as there are concerns that it could potentially lead to a decrease in tax collection rather than an increase