VAT and duty hike will put severe pressure on public: Mirza Fakhrul

BNP Secretary General Mirza Fakhrul Islam Alamgir said, "Rather than confronting the challenges, the current government has opted to raise VAT and duties midway through the year, which will place enormous pressure on the public."

He made this remark at a press conference on Saturday (January 18) at the BNP Chairperson's office in capital's Gulshan.

Mirza Fakhrul said, "Amid ongoing economic instability and high inflation, the interim government has imposed VAT and supplementary duties on more than 100 products. It has also removed tax exemptions on items such as essential food items, clothing, medicine, and mobile internet services. This decision will have a negative impact on the daily lives of ordinary people, especially the poor and middle class."

He said, "The government’s statements reveal that they raised VAT to cover the first phase of a 42,000 crore taka deficit in the current budget, meet potential future shortfalls, and manage IMF loans, as current revenue is insufficient to cover government expenditures. Similarly, the government recently printed 22,500 crore taka to address liquidity issues in struggling banks."

He also said, "The aftermath of Awami fascism has caused chaos and instability in various sectors, including the financial sector, creating future challenges. However, BNP is deeply concerned about the impact of the interim government’s decision on the lives of ordinary people. The ousted Awami League government has effectively ruined the country's economy through corruption and plundering over the past 15 years. By December 2024, foreign exchange reserves will have fallen to 21 billion dollars, and inflation will have risen to nearly 11%, with some areas seeing an increase of over 25%."

"Given the current situation, reviving and stabilizing the economy is undoubtedly a major challenge. The person in charge of the country's governance must confront this challenge with competence and courage. However, it is highly concerning that the interim government, instead of effectively addressing these challenges and focusing on building a foundation for economic restructuring, has abruptly raised VAT and duties midway through this fiscal year, a decision that is simple but not beneficial for the people," Mirza Fakhrul added.