Dhaka, Feb. 9 -- Finance Adviser Dr Salehuddin Ahmed has said the recent VAT hike at the beginning of the year was due to the need for funding compensation for those severely injured during the Anti-Discrimination Student Movement.

"Where will I get this money from? VAT is the quickest way to generate funds, so I implemented it. However, I have also reduced several items," the adviser said during a views-exchange meeting on "The Role of Remittances in Bangladesh's Economy," organised by the Bangladesh Secretariat Reporters Forum (BSRF) on Sunday.

He mentioned that several hundred crore taka had to be allocated, with Tk 35 lakh per injured individual. Besides, Tk 500 crore is required for 300 police vehicles that were set on fire during ...