Kamruzzaman Bablu :
Two separate entities of the Government — the Petrobangla and the National Board of Revenue (NBR) — recently proposed to hike the gas price for industries and doubled the tax rate for the motorcycle, refrigerator, air-conditioner and compressor industries to reduce government subsidies for gas production and to earn more tax over related sectors.
Government’s these two proposals growing dissatisfaction high among the stakeholder’s, said insiders.
According to several business bodies, the Petrobangla has recently proposed Bangladesh Energy Regulatory Commission (BERC) to increase industrial gas prices from Tk 30 to Tk 75.72 per unit, citing the need to reduce government subsidies for gas production.
Simultaneously, the National Board of Revenue (NBR) has also doubled the income tax rate for the motorcycle, refrigerator, air-conditioner and compressor industries from 10 percent to 20 percent.
Centering these two issues, sector related entrepreneurs and businesses group has expressed serious concern over the proposed increase in industrial gas prices and the rise in VAT and income tax rates on certain manufacturing industries, warning of adverse impacts on the country’s economy and investment climate.
Showkat Aziz Russell, President of Bangladesh Textile Mills Association (BTMA) expressed his deep worry after the Ministry of Power, Energy and Mineral Resources policy decision to implement a new pricing structure for gas.
“Without any prior discussion with BTMA, BGMEA or other leading trade bodies this sudden decision to buy gas at import price will be detrimental for the country’s industries as a whole,” Aziz Russell, President of the BTMA told The New Nation on Thursday.
“If the new government, which came to power after tremendous sacrifice by students and people, makes rush decisions like the previous fascist govt. then what is the difference between the two governments?” he asked.
“They should justify the increase to industries and then can think of such absurd policies. Whereas, we were hopeful that the people’s govt. would reduce the gas price- that was suddenly increased by the ousted previous government,” added Russell.
In terms of the negative impact of this decision, BTMA President said, “Our textile backward sector is already losing competitiveness to neighboring countries like India. And now if we have to buy gas at import price, then we have to shut down our factories.
I do not think it is an initiative to create any employment. Rather, hundreds of thousands of our workers will lose their jobs.”
“Our demographic dividend is our population. Whereas, this type of one-sided decision will be perilous to Bangladesh’s biggest export-earning sector and its millions of workforce. Not only that our industrialization prospect will be greatly hampered as well.”
Currently, they pay Tk 30.75 per cubic meter per flat even if they violate their permitted load. However, for new industrial and captive connections, Tk 75.72 per cubic meter will have to be paid.
According to the proposal, industrial and captive power users will have to pay Tk 75.72 per cubic meter for using gas beyond their permitted load.
Earlier, the Awami League government increased gas prices for industry by more than 150% and set them at Tk 30 per unit.
However, the interim government had announced that it would not arbitrarily set prices by bypassing BERC like the ousted Awami League government.
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), called the proposed hike excessive and unjustified.
“Why should the price be increased to Tk 70-75? Such a major decision requires thorough consultation with stakeholders. This lack of engagement is unacceptable,” he said.
“If this decision is implemented without proper dialogue, how is the interim government any different from the previous Awami League administration?” he questioned.
Meanwhile, The Dhaka Chamber of Commerce and Industry (DCCI) also expressed serious concern over the proposed increase in industrial gas prices and the rise in VAT and income tax rates on certain manufacturing industries, warning of adverse impacts on the country’s economy and investment climate.
The DCCI stated that these measures would significantly increase production costs, intensify inflationary pressures, and undermine the competitiveness of export-oriented industries, the chamber said in a press release on Thursday.
The organisation further noted that the proposed gas price hike would multiply the cost of doing business without addressing the issue of uninterrupted gas supply, thereby hindering industrial operations and discouraging new investments.
The DCCI also highlighted that reneging on previously promised tax benefits for manufacturing industries until 2032 would signal policy inconsistency, potentially deterring local and foreign investors.
In light of the unstable economic situation, the DCCI urged Petrobangla, BERC, and the government to reconsider these decisions and collaborate with the private sector to ensure a business-friendly environment supporting sustainable economic growth.
Though the Commerce Adviser Sk Bashir Uddin has described the move to raise gas price from Tk 30 to Tk 75 per cubic metre as an “unpleasant but unavoidable”.
“The decision to raise gas prices is not a pleasant one for the government. However, it is necessary. The adjustment will be carried out through the Bangladesh Energy Regulatory Commission (BERC) after discussions with entrepreneurs,” he made the disclosure while he speaking at the inauguration of GAPExpo-2025 at the International Convention City Bashundhara in Dhaka on Wednesday.
