The recent proposals from two governmental entities, Petrobangla and the National Board of Revenue (NBR), to dramatically hike industrial gas prices and double taxes for the motorcycle, refrigerator, air-conditioner, and compressor industries, have sparked a wave of discontent among stakeholders.
The suggested shift — from Tk 30 to an alarming Tk 75.72 per unit for gas — coupled with a rise in income tax from 10 per cent to 20 per cent, threatens to exacerbate an already precarious economic landscape.
According to a report published in this newspaper on Friday, industry leaders have voiced concern over the lack of consultation before these decisions.
Their assertion that such unilateral actions without prior discussion undermine the government’s credibility echoes a broader sentiment among business groups.
Many fear these policies could lead to detrimental impacts on employment and competitiveness, particularly as industries struggle against the backdrop of increasing operational costs.
The potential consequences of these proposals loom large. With allegations of decisions being rushed without sufficient dialogue, the spectre of reduced investments and factory closures raises alarms.
Industries, particularly in textiles, are concerned that the imposed gas prices at market rates could force them to shut down operations, thus endangering the livelihoods of hundreds of thousands of workers.
This is especially troubling given Bangladesh’s demographic dividend, which relies heavily on a vibrant, competitive workforce.
Moreover, the Bangladesh Textile Mills Association and Dhaka Chamber of Commerce and Industry articulated apprehensions regarding how these measures could escalate production costs and amplify inflationary pressures, weakening the competitive edge of export-oriented sectors.
The inconsistency in tax policy, particularly the premature withdrawal of promised incentives until 2032, risks driving away foreign and local investors.
However, Commerce Adviser’s description of the gas price hike as “unpleasant but unavoidable” does little to assuage these fears. While economic adjustments are sometimes necessary, they must be undertaken with sensitivity to the real-world impacts on businesses and consumers.
A collaborative approach, involving stakeholders in discussions to craft more sustainable solutions, is not just advisable—it is essential.
As the country navigates these turbulent economic waters, it is imperative for the government to prioritise dialogue and transparency. Only through a concerted effort to engage with industry leaders can we hope to foster a stable, investment-friendly environment that safeguards the livelihoods of millions while steering the nation towards sustainable growth.
