Aluminium utensil manufacturers have urged the government not to impose VAT at production level in the budget for FY2019-20 considering its extensive use by ordinary people.
The additional VAT will also pave the way for smuggling of cookware, depriving the government of a large amount of revenue, they pointed out at a press briefing at the Dhaka Reporters’ Unity auditorium on Monday.
“If VAT is imposed, both manufacturers and customers will suffer due to increased production costs,” said Obaydur Rahman, president of the Bangladesh Aluminum Manufacturing Association (BAMA).
Many factories might face closure, leaving thousands of people related to the sector jobless.
The decision of imposing VAT is also contradictory to the government’s initiative to safeguard small and medium industries, Obaydur added.
The BAMA president apprehended that if the VAT is imposed on cookware production, they will face harassment.
BAMA General Secretary Mustafa Zindal and members Md Shahzahan Kabir, Ziauddin Ahmed, Absul Salam, Gazi Salauddin were present at the event.