- Government imposed 15% VAT on plastic and rubber flip-flops and footwear under Tk 150
- Small and medium plastic footwear manufacturers and lower-income consumers protested
- Previously, these products were VAT exempt, making them affordable for disadvantaged groups
- Bangladesh Paduka Prostutkarak Samity demanded reinstatement of VAT exemption
- Approximately 500 small-scale companies produce footwear under Tk 150
- Imposition of VAT will severely impact businesses catering to lower-income segments
- Adviser criticized government for unreasonable VAT, warned of impact on purchasing power
- Concerns raised about public health risks if marginalized groups cannot afford footwear
- Recycling process of discarded rubber and plastic contributes to environmental balance
- VAT imposition will hinder recycling process, negatively impacting environment and industry
- Inflation has led to decline in footwear sales, increased production costs due to VAT will worsen situation
- Manufacturers warned of factory closures, unemployment, and loss of income for hawkers
- Workers formed human chain in protest, urged government to reverse VAT decision
Source: thefinancialexpress.com.bd
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
