The decision to hike value-added tax (VAT) midway through the fiscal year would be suicidal for the economy amid an ongoing economic slowdown, the Dhaka Chamber of Commerce and Industry (DCCI) said today.

"This decision will adversely affect inflation and negatively impact the general public. We do not support this move," said Taskeen Ahmed, president of the DCCI.

"It would be a suicidal step for the economy, given the wide-ranging economic implications, deterring national and international investments and trade," he added.

Taskeen made the remarks at a press briefing at the DCCI office in Motijheel after the interim government raised VAT and supplementary duties on nearly 100 goods and services on Thursday.

"We have already shared our official reaction and will meet with government officials, including the governor and the commerce secretary, to convey our concerns," he added. 

He urged the government to cut unnecessary expenditures instead of burdening businesses. 

"A 20 percent reduction in government spending could save at least Tk 50,000 crore, which could then be used to meet budgetary needs," he said.