FICCI expresses concerns over lack of stakeholder consultation prior to policy revision

FICCI expresses concerns over lack of stakeholder consultation prior to policy revision

The Foreign Investors Chambers of Commerce & Industry (FICCI) Bangladesh, the apex chamber representing Foreign Direct Investment (FDI) in the country, expresses deep concern over the recent decision to increase VAT/Supplementary Duty (SD) on a range of products without prior consultation with key stakeholders.
FICCI represents 90% of Bangladesh total FDI, covering high-revenue sectors such as tobacco, telecom, energy, and financial institutions, which collectively contribute approximately 30% of the total internal revenue. The recent decision to hike VAT, SD, and other taxes is likely to impact consumers while significantly raising the cost of doing business in the country. This measure threatens the financial stability and operational capacity of businesses that generate crucial tax revenue and drive economic growth.
FICCI identifies major concerns for businesses due to the increase in VAT rates to 15% under non-recoverable conditions for: Procurement Provider (7.5% to 15% with 100% input VAT non-recoverable), Repairs & maintenance (10% to 15% with 100% input VAT non-recoverable), Transport contractor (10% to 15% with 20% input VAT non-recoverable), Restaurant (5% to 15% with 100% input VAT non-recoverable).