Government's revenue authority is set to re-introduce 5.0 per cent advance income tax on coal import in a bid to help offset possible revenue shortfall from the target fixed in the new budget.
Officials said the National Board of Revenue (NBR) has taken the decision to re-impose the tax following recent relaxation of restrictions on export of coal by India.
The National Green Tribunal of India (NGTI) recently lifted its bar on the export of coal from Meghalaya coalmine for four months -- from August to November.
The NGTI slapped the ban on the export of coal from its eastern estate on May 17, 2014, which compelled Bangladesh to look for the fossil fuel from different other countries.
Country's brick production, in particular, faced a blow owing to scarcity of fuel for firing brick kilns.
In December 2014, the NBR waived customs duty, advance trade VAT and AIT on the import of coal to facilitate coal import from other countries.
In the current budget for fiscal year 2015-16, customs duty and Value Added Tax (VAT) on coal import have been re-imposed through the first schedule of the Finance Act 2015.
Officials said the 5.0 per cent AIT should be re-imposed following restoration of the coal-export trade by the neighbouring country.
The issue came into discussion after the Sylhet income tax office recently addressed the matter with concern over a significant amount of revenue loss.
Commissioner of the income tax office in Sylhet Md Mahmudur Rahman requested the NBR to look into the matter.
Income-tax collection by the Sylhet zonal income-tax office largely depends on AIT on the import of coal through the northeastern frontier.
Falah Uddin Ali Ahmed, president of Sylhet Coal Importers Association, said tax imposition on coal import could be cut to 18 per cent by trimming AIT to 3.0 per cent from 5.0 per cent and waiving ATV.
"Total import tax will come to 25 per cent after imposition of AIT," he said.
The association leader said import of coal from Meghalaya is much easier than from other countries, considering risk factor.
After the imposition of ban, importers purchased coal from South Africa, Australia and Indonesia.
Bangladesh imports around 1.6 million tonnes of coal annually from Meghalaya and other parts of India against annual domestic demand for 4.0 million tonnes.
Barapukuria coalmine supplies some 2.0 million tonnes of coal.
Some 80 per cent of the imported coal is used in brick kilns while the rest of the energy goes for power production, re-rolling mills, tea garden etc.
Last year, the neighbouring country imposed the ban on export of coal following a petition by its local environmental organisation.
After imposition of the restriction, some local brick manufacturers suspended their operation while some started cutting trees to continue their production in a desperate bid to meet the needs for the construction material.
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