Dhaka, Jan 18 (V7N) — Dr. Debapriya Bhattacharya, head of the White Paper Preparation Committee, has criticised the government's decision to increase the VAT rate, describing it as "unwise" and detrimental to social security. He shared his concerns during a dialogue on "Economic White Paper, Reforms and Budget" held in Agargaon, Dhaka, on Saturday morning.

Dr. Bhattacharya stated that the sudden hike in VAT has led to social instability and confusion. "Many are misinterpreting the white paper, and uncertain statements from within the government regarding recommendations and next steps are further complicating the situation," he said.

While acknowledging the government's focus on institutional and administrative sectors, Dr. Bhattacharya pointed out a lack of attention to necessary economic reforms. He highlighted a declining growth rate with no signs of improvement and warned of the country's entrapment in a medium-term economic stagnation.

Energy concerns also featured in his address, with Dr. Bhattacharya emphasising the need for sustainable solutions in the sector. "There is an urgent need for coherent strategies to address these pressing issues," he concluded.

The dialogue shed light on the economic challenges Bangladesh faces and underscored the importance of reforms to ensure stability and growth.

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