The Labour Reform Commission has voiced strong opposition to the interim government’s proposal to impose taxes on payments made from three key worker-related funds, urging its immediate withdrawal.

In a statement issued on Tuesday, the Commission’s chairman, Syed Sultan Uddin Ahmed, expressed deep concern over the move, calling it ‘very sad and unacceptable.’

The funds affected by the proposed levy include the Worker Welfare Fund, the Welfare Fund and the Workers’ Welfare Foundation Fund—each of which provides vital support to workers, particularly those in the informal sector.

‘The proposed budget for the fiscal year 2025–26 has prioritised 12 sectors, yet the labour sector has once again been overlooked, which is unfortunate,’ Sultan said.

He explained that the government does not directly allocate budgetary funds to these worker support mechanisms.

Instead, 5 per cent of a company’s dividends are designated for worker benefits, with 10 per cent of that amount deposited into the Workers’ Welfare Foundation.

The funds are typically used for healthcare, education, and maternity support for marginalised workers.

‘Taxing such a humanitarian sector is not only surprising but also deeply disappointing,’ he added.

‘It is especially shocking to consider taxing allocations meant for cancer or paediatric treatment for underprivileged communities.’

Sultan, who also serves as the Executive Director of the Bangladesh Institute of Labour Studies (BILS), said that there have been previous allegations of political misuse of the welfare funds.

To address these concerns, the Labour Reform Commission has recommended the publication of a ‘white paper’ to ensure transparency and accountability.

Calling for immediate policy reversal, Sultan said, ‘The proposed tax on all worker-related funds should be scrapped without delay.’

He also urged the government to increase the overall budget allocation for workers’ welfare and social security, and to establish a separate special fund as per the commission’s recommendations.