VAT, tax rise to force biscuit makers to cut sizes, Shafiqur warns

Business Desk :

The President of the Bangladesh Auto Biscuit and Bread Manufacturers Association (BABBMA), Shafiqur Rahman Bhuiyan, criticised value-added tax (VAT) and taxes on biscuits and bread, calling them staples for low-income people, and voiced concern over continuing shrinkflation.

“How much smaller must we make biscuit and bread packets to ease this pressure? Will we have to keep shrinking their size until we are left with empty packets?” he said.

He made this remark during a roundtable discussion titled “The Burden of Extra Taxes on Consumers: What Needs to be Done” organised by online news portal Jago News at the Metropolitan Chamber of Commerce and Industry (MCCI) conference hall in the capital on Wednesday. He urged the government to remove VAT and taxes on main food items for low-income people, reports Media

The event was conducted by Jago News Editor KM Zeaul Haque, with speeches from economist and Research Director of the Center for Policy Dialogue (CPD) Khondaker Golam Moazzem, Chairman of Policy Exchange Bangladesh Dr. M Masrur Reaz, economist Dr. M M Akash, Chairman of Pran-RFL Group Ahsan Khan Chowdhury, former Director General of BIDS Dr. Mustafa K Mujeri, former member of the National Board of Revenue Rezaul Hasan, President of BKMEA Mohammad Hatem, former President of the Dhaka Chamber of Commerce Ashraf Ahmed, among others.

Shafiqur Rahman emphasised that biscuits are an essential source of nutrition for low-income families. Due to the increase in VAT, manufacturers will no longer be able to produce biscuits at low prices. “How much more should we reduce the size? At this rate, we’ll end up giving empty packets,” he stated.