On Saturday, the Dhaka Chamber of Commerce and Industry (DCCI) stated that increasing value-added tax (VAT) halfway through the fiscal year would be disastrous for the economy during an economic downturn.
"This action will have a detrimental effect on inflation and will harm the public. We oppose this decision," said Taskeen Ahmed, president of the DCCI.
"Considering the extensive economic repercussions, which would deter both national and international investments and trade," he continued, it would be a damaging move for the economy.
Taskeen made these comments during a press briefing at the DCCI office in Motijheel on Thursday after the interim government raised VAT and supplementary duties on almost 100 products and services.
"We have already communicated our official response and plan to meet with government officials, including the governor and the commerce secretary, to express our concerns," he stated.
He called on the government to reduce unnecessary spending rather than burden businesses more.
"A reduction of 20 percent in government expenditure could save at least Tk 50,000 crore, which could then be allocated to satisfy budgetary needs," he remarked.
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