The recent decision by the interim government to raise VAT and supplementary duty on over 90 essential products and services has left consumers grappling with an even heavier financial burden.
Just as the nation began to recover from the oppressive regime of the Awami League, the optimism for relief has been swiftly overshadowed by the harsh reality of soaring inflation, now standing at a staggering 10.89 per cent.
Our newspaper on Saturday reported that the government’s move to increase taxes on everyday items — ranging from fruits and beverages to medicines and clothing — comes at a time when many households are already struggling to make ends meet.
The rationale behind these tax hikes, ostensibly to meet IMF conditions, raises serious questions about the government’s priorities.
While fiscal responsibility is crucial, the timing and execution of these measures appear ill-conceived, especially when they threaten to exacerbate the very inflation they aim to control.
Experts, including former World Bank economist Zahid Hussain, have criticised the government for implementing such drastic tax increases mid-year, arguing that these measures should have been introduced during the annual budget process.
This would have prepared consumers and businesses for the impending financial strain.
Instead, the abrupt nature of these changes has left many feeling blindsided and vulnerable.
Therefore, we cannot but condemn the government’s decision for its disproportionate impact on marginal earners and the lower middle class.
These groups, already facing the brunt of high inflation, will find it increasingly difficult to afford necessities.
The government’s failure to consider the socio-economic ramifications of its tax policies is alarming and indicative of a distance from the realities faced by ordinary citizens.
Moreover, the restaurant industry, a vital component of our economy, is already reeling from rising operational costs.
As we navigate these turbulent economic waters, the government must reassess its approach. Instead of imposing further burdens on consumers, it should explore alternative solutions that prioritise economic stability and the welfare of its citizens.
The path forward must involve dialogue with stakeholders, a commitment to transparency, and a focus on sustainable growth that benefits all, not just a select few.
