Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has called for essential goods to be exempt from VAT.
He stated that while workers' wages have been increased, the rising prices of essential goods are preventing them from leading better lives, which is affecting productivity.
Rubel emphasised that the garment sector, which accounts for 84% of the country’s export earnings, has raised workers’ wages by 10% to improve their quality of life. However, he argued that this wage increase alone is insufficient to improve living standards. To achieve a better life for workers, essential goods must be exempt from VAT.
He further explained that if these goods are not exempt from VAT, workers will be unable to dedicate quality time to production, directly impacting the manufacturing process and hindering export growth.
Rubel urged the government to remove VAT on essential goods, not only for garment workers but also to benefit low-income people in general.
He made these remarks during a roundtable discussion titled 'Additional Tax Burden on Consumers: What to Do to Overcome?' organized by the online news portal Jago News at the Metropolitan Chamber of Commerce and Industry (MCCI) conference hall in the capital on Wednesday.