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Footwear makers demand VAT withdrawal

footwear leather

Bangladesh Paduka Prostutkarok Samity, an association of the footwear manufacturers, on Monday demanded withdrawal of value-added tax on shoes and slippers made of rubber and plastic. At a press conference held at Dhaka Reporters’ Unity in the capital, leaders of the BPPS said that the sector had been enjoying the VAT exemption for rubber- and plastic-made shoes and slippers priced up to Tk 120 a pair. But finance minister AMA Muhith in his budget proposal placed in parliament on Thursday withdrew the benefit, which would destroy the sector, they said. They said that poorer sections of people were the main consumers of the products. The prices of the products will go up and go beyond the affordability of poor people if the VAT is not exempted, they said. Leaders of the association urged prime minister Sheikh Hasina to intervene into the matter considering the strength of the sector and financial capacity of users of the products. BPPS president Shakhawat Hossain Belal and secretary general Jalal Uddin spoke, among others, at the briefing.