Civic group demands cancellation of 'IMF-prescribed' VAT hike

The Gonotantrik Odhikar Committee (Democratic Rights Committee) has called for the withdrawal of a 15% VAT increase implementation which the committee linked to the conditions imposed by the International Monetary Fund (IMF) for its ongoing loan programme for Bangladesh.

At a rally before the National Museum in Shahbagh, Dhaka today (17 January), speakers criticised the government's decision to impose the VAT increase, calling it unjust and detrimental to the public.

Prof Maha Mirza, joint convener of the committee, said, "Imposing such VAT without any discussion is ill-considered. This is a repetition of policies under the Hasina government."

She alleged that the government is prioritising bureaucratic perks over public welfare.

"While VAT is being increased indiscriminately, Tk7,500 crore are being spent on the dearness allowance of bureaucrats. Defaulted loans remain unaddressed, yet unprecedented promotions are being handed out to officials in deficit-ridden state banks," she added.

Professor Mirza also criticised the government for its response to labour unrest.

"When garment workers agitate for their unpaid salaries, joint forces are unleashed on them. This mirrors the Hasina government, where workers were shot and killed without any accountability," she said.  

She demanded an immediate reversal of the VAT increase and the cancellation of the Tk7,500 crore dearness allowance.

"The people who brought this government to power are now being burdened with these VAT hikes, while promotions and allowances are given to bureaucrats," she added.

Call to end 'VIP culture'

Speaking at the rally, Prof Anu Muhammad condemned what he described as a "terrible VIP culture" perpetuated by the government.

"During the Sheikh Hasina era, people were at least allowed to walk or cycle in front of Ganabhaban. Now, people cannot even pass by the house where Muhammad Yunus lives without obstruction. Is their security threatened by the people?" he questioned.  

He warned that such practices could lead to public unrest. "If the people are agitated, no amount of security will suffice," he said, adding that the government must change its approach to governance.

Anu Muhammad criticised the government for neglecting marginalised groups and ignoring the financial struggles of workers.

"Thousands of workers remain unemployed due to factory closures, yet there is no concern for them. Instead, VAT is being imposed without considering the people's financial condition," he said.  

Muhammad also raised concerns about the treatment of ethnic minority groups, accusing the government of fostering a culture of oppression.

"The word 'Adivasi' [indigenous] is not just about original inhabitants but about distinct culture, ethnicity and laws. Fascism denies other ethnic groups, and this government's policies reflect such tendencies," he said.

He called for transparency regarding land leases in the Chittagong Hill Tracts, stating, "It must be revealed who has been given leases to the hills. Instead, oppression continues to maintain this occupation."

The rally concluded with a torchlight procession in the evening as participants demanded the cancellation of the VAT hike and bureaucratic allowances, along with an apology for police attacks on protesters.