VAT, tax rise to force biscuit makers to cut sizes, Shafiqur warns

The President of the Bangladesh Auto Biscuit and Bread Manufacturers Association (BABBMA), Shafiqur Rahman Bhuiyan, has said, "How much longer will we reduce the size of biscuit packets under the pressure of VAT and taxes? How much more will we reduce the quantity in each packet? At this rate, we will have to give empty packets."

He made this remark during a roundtable discussion titled "The Burden of Extra Taxes on Consumers: What Needs to be Done" organised by online news portal Jago News at the Metropolitan Chamber of Commerce and Industry (MCCI) conference hall in the capital on Wednesday, February 12. He urged the government to remove VAT and taxes on main food items for low-income people.

The event was conducted by Jago News Editor KM Zeaul Haque, with speeches from economist and Research Director of the Center for Policy Dialogue (CPD) Khondaker Golam Moazzem, Chairman of Policy Exchange Bangladesh Dr. M Masrur Reaz, economist Dr. M M Akash, Chairman of Pran-RFL Group Ahsan Khan Chowdhury, former Director General of BIDS Dr. Mustafa K Mujeri, former member of the National Board of Revenue Rezaul Hasan, President of BKMEA Mohammad Hatem, former President of the Dhaka Chamber of Commerce Ashraf Ahmed, among others.

Shafiqur Rahman emphasised that biscuits are an essential source of nutrition for low-income families. Due to the increase in VAT, manufacturers will no longer be able to produce biscuits at low prices. "How much more should we reduce the size? At this rate, we'll end up giving empty packets," he stated. He warned that if VAT is increased further, low-income people will lose access to this necessary food item.

He added, "We have been protesting for a month to reduce VAT and are still on the ground. We had hoped that Dr. Yunus would look into our issue, but that hope is fading." He argued that food products should be exempt from VAT, noting that developed countries like the UK do not impose VAT on food items.

Shafiqur Rahman explained that the recent amendment to the Value Added Tax and Supplementary Duty (Amendment) Ordinance 2025 has raised VAT on biscuits and processed agricultural food products from 5% to 15%. "Now, a company that is paying VAT of Tk 10 crore will have to pay Tk 30 crore. How will the industry survive under such conditions?" he questioned. He pointed out that the burden of VAT is being imposed on those who already pay taxes, while a large section of the population remains outside the VAT net. He stressed the need to expand the VAT net and reduce VAT on essential food items.