Protesters demanded the withdrawal of all increased taxes through a single notice, the cancellation of IMF contracts and the collection of “income tax” while enacting an “ordinance” against loan defaulters, deeming the tax hikes “anti-people” and “inhumane”.
These demands were made at a mass rally held at Shahbagh on Thursday.
The protest was arranged to address the increasing VAT in daily commodities, caused by IMF's loan conditions.
Leaders from the student coalition, worker coalition, cultural activists and people from all walks of life attended the event.
In January 2022, the IMF provided a loan of $4.7 billion USD to Bangladesh in four installments, of which three have been disbursed and one is still pending.
Throughout this period, the IMF has been overseeing Bangladesh’s revenue collection, setting targets that have not been met, leading to an increase in VAT.
Iqbal Kabir, Secretary of the Communist League of Bangladesh, Dhaka Mahanagar wing, said that the IMF’s loan conditions are designed to generate “interest,” leaving the government with no choice but to impose VAT.
“The IMF loan’s installment payments are the reason behind the recent VAT increase,” Iqbal said.
Marzia Prova, an activist, called the IMF loan “irrelevant,” arguing that the country’s revenue deficit could be easily addressed by collecting defaulted loans and enacting an ordinance to enforce stricter income tax collection.
"The total defaulted loans from four state-owned banks are, Sonali Bank with Tk16,623 crore, Janata Bank with Tk74,000 crore, Agrani Bank with Tk30,000 crore and Rupali Bank with 12,738 crore," she said.
She also suggested that remittance be collected through a governmental approach, rather than through the informal “Hundi” system, which results in remittances not being added to the government’s treasury.
Anik Roy, a political activist, pointed out that the IMF’s “structural adjustment” conditions are responsible for the VAT increases.
“Countries that borrow from the IMF are somewhat obligated to follow their policies,” he added.
Iqbal urged that by making this decision, the Interim Government has "plundered" the spirit of "expatriates", as they decided not to send any "remittance" to the "fascist" regime during the July Uprising.
On January 9, the interim government issued ordinances imposing additional duties, taxes and VAT on over a hundred products and services.
The new ordinances, Value Added Tax and Supplementary Duty (Amendment) Ordinance 2025 and The Excise and Salt Act (Amendment) Ordinance 2025, introduced higher charges for purchasing goods and services compared to previous rates.
In response to criticism, the National Revenue Board (NBR) issued four separate notifications withdrawing the increased VAT on medicines, restaurants, workshops and mobile services, reverting to previous VAT rates for these sectors.
“Simply withdrawing VAT from one or two products is insufficient. If you think this tactic will mislead the public, you are mistaken. The people of post-uprising Bangladesh will not accept such measures,” said Iqbal.
Iqbal also pointed out that wherever the IMF has intervened, the economy has collapsed.
“As a result, the IMF will have no place in the Bangladesh of this uprising,” he declared.
"We must revive our economy through our efforts,” he added, suggesting the use of remittances from expatriates and garment workers to help industrialize and revive the economy.
The rally started at Shahbagh and ended in front of Ananda Cinema Hall, passing through Katabon, Hatirpool and Green Road.
