Dhaka, May 13 -- The Bangladesh Auto Biscuit & Bread Manufacturers' Association (BABBMA) has formally requested the National Board of Revenue (NBR) to completely withdraw Value Added Tax (VAT) on biscuit and agro-processed foods aiming to offset rising production costs, sources said.

They are disappointed that their previous recommendations, which were backed by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), were not reflected in the 2025-2026 national budget.

Currently, the NBR imposes 7.5 per cent VAT on biscuits, but according to industry insiders, prices of raw materials and packing materials have increased by 10 to 15 per cent in both local and international markets.

Biscuit producers continue to pay addit...