Labour Reform Commission Chief and BILS Executive Director Syed Sultan Uddin Ahmmed has strongly reacted to the proposal to impose tax on money paid from the Workers’ Participation Fund, Welfare Fund and Workers’ Welfare Foundation Fund in the proposed budget for the fiscal year 2025-26.

In a statement, he said, “Although 12 sectors have been mentioned as priorities in the proposed budget, the labour sector has been ignored, which is very regrettable. The government never allocates budget directly to these funds. Rather, 5% of the company’s dividend is used as the dues of the workers, of which 10% is deposited in the Workers’ Welfare Foundation. This fund is mainly used for medical treatment, education and maternity support of marginal workers working in the informal sector. Taxation on such a humanitarian sector is very regrettable and unacceptable.”

He further said, “The proposal to deduct tax from the money allocated for cancer or pediatric treatment of marginalized communities is surprising for the workers. There have been allegations of political misuse of this fund in the past. The Labour Reform Commission has already demanded the publication of a ‘white paper’ to ensure the transparency of this fund in its final report.”

He stressed, “The proposed tax on all funds related to labour welfare must be withdrawn immediately. In addition, the allocation in the budget for the welfare and social security of workers must be increased by prioritizing the labour sector and a separate special fund must be included as recommended by the Labour Reform Commission.”