Price hikes primarily due to market manipulation, not VAT: Finance adviser
He also said the government was currently reviewing the additional VAT imposed on essential items
While VAT may have contributed to price hikes in a few instances, the primary drivers are market manipulation and supply chain disruptions, Finance Adviser Salehuddin Ahmed said today (16 January).
Speaking to reporters following a meeting of the Advisory Council Committee on Government Procurement at the Secretariat today (16 January), he also said the government was currently reviewing the additional VAT imposed on essential items like medicines and clothing.
"While VAT increases are expected on certain products, such as mobile phones and imported fruit juices, their impact on the general public is limited," Salehuddin said.
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Regarding the Islamic Development Bank (IDB)'s funding to Bangladesh, the finance adviser stated that the IDB typically provides substantial funding for gas and petroleum projects.
Salehuddin stated that he recently requested funding for fertiliser projects, which the IDB has agreed to consider.
The National Board of Revenue (NBR) recently increased VAT rates on a number of products.
This includes a hike from 5% to 15% on some items, from 7% to 15% on others, and from 10% to 15% on certain categories.
