FMA demands reinstatement of VAT exemption

Business Report :

The Bangladesh Footwear Manufacturers Association (FMA) once again strongly urged the government to reinstate VAT exemption on the production of Hawai sandals and plastic footwear (priced up to 150 BDT). The association’s leaders made this demand at a human chain protest in front of the National Press Club in Dhaka on Sunday. Previously, the organisation had also held a press conference on January 25 regarding the same demand.
Speakers at the protest included Md. Abdul Kuddus (Rana), General Secretary of the Association; Md. Rezaul Karim, Senior Vice President; Ashraf Uddin, Vice President; Shahjahan Rahman (Saju), Joint General Secretary; Atikur Rahman, Assistant Organizational Secretary; members of the Advisory Committee, as well as various footwear factory owners, officials, employees, and workers.
The association leaders warned that if the previous VAT exemption is withdrawn and a 15% VAT is imposed, it would severely harm small and medium-sized footwear industries. They further stated that if their demands are not met, they will escalate their movement with peaceful human chains, sit-in protests, and ultimately factory shutdowns.
The organization has already urged the government to immediately revoke the VAT imposition decision and warned that they will continue their protests until their demands are met. They called on the government to act promptly, cautioning that failing to meet their demands may lead to factory closures and stricter protest actions.
During the demonstration the association leaders said “We respect VAT laws, but they must be implemented keeping the interests of the poor in mind. We urge the government to reconsider and withdraw this decision to protect the footwear industry and the general public.”
They also questioned whether imposing VAT on the poor is a consequence of past uprisings or revolutions in July-August. Furthermore, they criticized the VAT imposition, alleging that it was enforced due to pressure from the International Monetary Fund (IMF), and questioned why such a burden should be placed on the poor.