Dhaka, June 17 -- The Bangladesh Footwear Manufacturers' Association has urged the government to reinstate the 15 per cent value-added tax (VAT) exemption on low-cost rubber and plastic footwear priced at or below Tk 150, warning that the small-scale footwear industry is at risk of collapse due to the current tax policy.

At a press conference held at the Dhaka Reporters' Unity (DRU) on Tuesday, the association's leaders said the removal of the VAT exemption has led to increased production costs, reduced demand, factory closures, and significant job losses-particularly affecting informal workers in both rural and urban areas.

"The primary raw materials used in this sector are discarded rubber, plastic, and polythene, which are recycled t...