Rubber and plastic shoe and slipper makers on Tuesday urged the government not to withdraw VAT exemption facilities on the shoes and slippers made of rubber and plastic valuing up to Tk 120 per pair. At a press conference held at Dhaka Reporters Unity leaders of the Bangladesh Paduka Prostutkarok Samity, Bangladesh Footwear and Footwear Accessories Manufacturers Association and the Bangladesh Rubber Industries Association demanded withdrawal of proposed value-added tax on the products for the sake of the livelihoods of three lakh people involved with the sectors. Finance minister AMA Muhith in his budget speech placed in the parliament on June 2 made the proposal to withdraw the VAT exemption on shoe and slipper made of rubber and plastic valuing up to Tk 120 per pair. BPPS president Shakhawat Hossain Belal termed the budget proposal illogical arguing that the government withdrew the VAT facility for rubber and plastic shoe makers but allowed the facility for aluminium cookeries and plastic-made household goods. He demanded scrapping of the discriminatory proposals so that the sector could survive and poor people could afford buying rubber and plastic shoes and slippers as per their desire. Belal said that there were 500 rubber and plastic shoe makers in Dhaka and adjacent areas where three lakh people were directly or indirectly involved. Md Babul, president of the Bangladesh Rubber Industries Association, said if the government did not allow the VAT exemption the shoes and slippers made of rubber and plastic would be costlier and local industry would lose its competitiveness and multinational companies would grab the market. Moazzem Hossain, president of the Bangladesh Footwear and Footwear Accessories Manufacturers Association, cited two reasons as to why the government should allow VAT exemption for the sector; firstly, the sector is comprised with small and medium enterprises and secondly, the sector produces products by re-cycling which protects the environment. Plastic shoe and slipper makers said that the imposition of 15 per cent VAT would hurt poor farmers, workers, rickshaw pullers and hawkers of the country as they were the main buyers of such products.
