Reinstate VAT exemption on plastic, footwear supply

Business Report :

The Footwear Manufacturers Association of Bangladesh (FMAB) has strongly urged the government to reinstate the VAT exemption on the production of plastic and rubber slippers and footwear (priced up to 150 BDT).
In a press conference held on Saturday at the Sagar-Runi Auditorium of the Dhaka Reporters’ Unity (DRU), the association leaders warned that the imposition of a 15 percent VAT, following the cancellation of the previous exemption, would severely harm the small and medium-sized footwear industry. They further stated that if their demand is not met, they would resort to peaceful protests, sit-ins, and ultimately shut down factories.
The conference was attended by the association’s General Secretary, Md. Abdul Kuddus (Rana), Senior Vice President Md. Rezaul Karim, Vice President Ashraf Uddin, Joint Secretary Shahjahan Rahman (Saju), Assistant Organizational Secretary Atiqur Rahman, along with other leaders and owners, officials, and employees from various footwear enterprises.
In a written statement, the association’s advisor, Sakhawat Hossain Belal, argued that the proposed 15 percent VAT on plastic and rubber slippers and footwear was unreasonable. He explained that this move would push these affordable products out of the reach of the general public, especially impacting low-income groups such as laborers, farmers, rickshaw-vans drivers, and marginalized communities.
Despite rising inflation and increased costs of goods, affordable slippers priced at 150 BDT have remained accessible to the lower-income population. These products are considered essential for the poor, as they have been the most affordable and easily available footwear option for them.
Vice President Ashraf Uddin stressed the importance of protecting domestic industries and ensuring that essential products remain affordable for the poor. He expressed hope that the government would take swift action to alleviate public hardship by reinstating the VAT exemption.
He also warned that the situation would worsen with the imposition of VAT on these products, highlighting that there has been no VAT on recycled plastic materials, including footwear, which also contributes to environmental sustainability.