BBBCMA seeks VAT exemption on bakery products

Staff Correspondent

29 March, 2021 12:00 AM printer

Bangladesh Bread, Biscuit and Confectionery Manufacturers‘ Association (BBBCMA) has sought value added tax (VAT) exemption on hand-baked bread, bun bread, biscuits and cakes (except party cake) worth Tk 150 per kg, in the budget of the fiscal year 2021-22.

BBBCMA President Mohammad Jalal Uddin made the proposal while speaking in a pre-budget discussion at the conference room of National Board of Revenue (NBR) in the capital on Sunday.

NBR Chairman Abu Hena Md Rahmatul Muneem presided over the discussion meeting.

Jalal Uddin said that the some hand-made bakery products including bread, bun bread, biscuits and cakes (excluding party cakes) worth Tk 150 per kg were completely VAT-free in the current financial year budget.

“I strongly demand to keep it completely VAT-free in the upcoming national budget considering the employment of lower-skilled youth in the hand-baked bakery industry and to survive this sector amid coronavirus pandemic,” he added.

The president of the association also claimed that despite the skyrocketing prices of all raw materials, the prices of any products in the hand-operated bakery industries have not increased this year due to earlier commitment.

About 2 million workers are involving in this sector over 5000 bakeries across the country. Every year’s above 5000 to 7000 employment has been created in this sector. 

In reply to the proposal Abu Hena Md Rahmatul Muneem said, “The NBR is working to protect local industries and we will review the benefits of your offer.”

NBR member (income tax) Alamgir Hossain, member (tax policy) Golam Kibria, member (VAT policy) Masud Sadiq and other officials related to budget, among others, were also present at the pre-budget discussion meeting.