Dhaka: The recent hike in Value Added Tax (VAT) has sparked public debate, but Economic Advisor Salehuddin Ahmed has assured that the rationale behind the decision will be disclosed in due time. Speaking to reporters on Tuesday after a meeting of the Government Procurement Advisory Council at the Secretariat, Ahmed claimed that the VAT increase has not significantly affected the prices of essential goods.

He stated, “Those who wish to criticize may do so; we have no intention of stopping them.” Ahmed added that tax and VAT adjustments are typically determined during budget discussions, and the latest adjustments include both an increase in VAT and certain exemptions on duties in other areas to create a balance.

Addressing the suspension of the government’s Open Market Sales (OMS) program, the advisor noted that the initiative had been introduced to address special circumstances. With market prices now showing signs of stabilization, the OMS program has been temporarily halted. However, Ahmed assured that the program could be resumed if future conditions demand it.

Commenting on the OMS scheme, he remarked, “The way OMS was being run so far cannot continue indefinitely. The government is exploring ways to make essential goods more affordable and stabilize prices further.”

When asked whether the suspension of OMS would negatively impact low- and middle-income households, Ahmed acknowledged the concerns but pointed out that subsidized OMS products often attract buyers from more affluent backgrounds, undermining its purpose.

The VAT hike and the suspension of OMS have triggered concerns among citizens, particularly those from lower-income groups. The government, however, remains firm in its position, reiterating its commitment to maintaining market stability while exploring long-term solutions for price control. Further details on the VAT hike are expected to be shared soon.