'Tax proposal on workers' welfare funds is unacceptable'

Syed Sultan Uddin Ahmed, Chief of the Labour Reform Commission and Executive Director of the Bangladesh Institute of Labour Studies (BILS), has strongly protested the proposed tax on contributions to the Workers' Participation Fund, Welfare Fund, and Workers' Welfare Foundation Fund in the 2025-26 national budget. He called the decision "unacceptable and unfortunate."

He expressed his reaction in a statement sent to the media on Tuesday (June 3).

Syed Sultan said, "The government never directly allocates money to these funds in the budget. Instead, 5% of a company’s net profit is allocated for workers, and 10% of that goes to the Workers' Welfare Foundation Fund. This fund is mainly used to support informal and underprivileged workers with healthcare, education, and maternity benefits. Imposing tax on such a humanitarian sector is deeply regrettable and unacceptable."

He further said, "The Labour Reform Commission has already recommended publishing a 'white paper' to ensure transparency in these funds. In the past, there were allegations of political misuse of these funds. Now, proposing to deduct tax from money meant for cancer or child treatment of poor workers is shocking and inhumane."

"The proposed tax on all worker-related welfare funds must be withdrawn immediately. At the same time, the budget allocation for workers’ welfare and social protection must be increased, and a separate special fund should be included as per the Labour Reform Commission’s recommendations," Syed Sultan added.

It should be noted that on Monday, Finance Advisor Salehuddin Ahmed announced the tax proposal on the workers' welfare fund during his budget speech.