Northern Bangladesh farmers staged a protest on the Rajshahi-Dhaka Highway, demanding the withdrawal of increased VAT and duty on tomato and mango pulp. Farmers from Rajshahi, Natore, and Chapainawabganj districts blocked the highway, halting traffic for half an hour.
The government recently raised VAT on processed pulp from 5% to 15% for tomatoes, mangoes, and other fruits, prompting processing companies to stop purchasing tomatoes. Iftikhar Alam Munna, a tomato farmer from Godagari upazila, stated, "As the processing companies stop purchasing tomatoes, we – the growers – cannot sell our tomatoes, causing the seasonal crop to rot in the fields."
He added that the VAT increase adversely affects marginal farmers, with tomato prices dropping to Tk 3-5 per kilogram locally. Md Babu, another farmer from Natore Sadar upazila, mentioned that growers face substantial losses this season, unable to recover even half of their production costs due to the price drop.
Trader Saddam Hossain noted that the VAT increase would lower consumer demand and impact small and medium enterprises in the sector. He remarked, "Rising electricity and gas prices, along with currency market instability, have already put immense pressure on the agricultural processing sector. If the VAT hike continues, it will become even harder for lower- and middle-income families to afford food products."
Speakers urged the government to revoke the VAT increase, threatening more intense actions if demands are unmet. The Department of Agricultural Extension reports that tomatoes are cultivated on 5,360 hectares in the Rajshahi region, covering Rajshahi, Natore, Naogaon, and Chapainawabganj districts.
Source: New Age