The Dhaka Chamber of Commerce and Industry (DCCI) has issued a stark warning regarding the Government’s recent proposal to increase Value Added Tax (VAT), customs duties, and gas prices, describing these measures as “suicidal” for the economy. Taskin Ahmed, President of DCCI, made the remarks during a press conference held at the DCCI office on Saturday, titled Overall Situation of the Contemporary Economy of the Country and Year-long Action Plan of DCCI in 2025.
Ahmed highlighted the challenges currently facing the private sector, particularly in the Ready-Made Garment (RMG) industry. The ongoing global geopolitical instability, rising import costs, fluctuating foreign exchange reserves, and high inflation rates have already placed significant pressure on businesses. The proposed increase in VAT on over a hundred products, along with the more than double hike in gas prices for industrial use, could exacerbate these issues.
“Amid this challenging economic landscape, the decision to increase gas prices from Taka 30 to Taka 75.72 per unit for industries will severely impact production costs,” Ahmed stated. He emphasised that the RMG sector, which heavily relies on affordable energy to remain competitive in the global market, could be particularly hard hit by these changes.
The DCCI President also noted that gas prices have already risen by 200 per cent over the past three years, and if the new proposal is enacted, it would represent a staggering 400 per cent increase. “This will not only disrupt production but also diminish the competitiveness of our industries, especially the RMG sector, which employs millions and contributes significantly to our export revenue,” he said.
In light of these challenges, Ahmed urged the Government to reconsider the proposed VAT and tax increases, emphasising the need for a business-friendly environment to support growth and stability. He called for a collaborative approach between the government and stakeholders to navigate the current economic hurdles and protect the interests of the RMG industry and broader economy.
The DCCI’s concerns underscore the urgent need for policy measures that prioritise economic stability and support for key sectors like RMG, which is vital for Bangladesh’s continued growth and development.
