Concessionary duty remains until May

The National Board of Revenue (NBR) is likely to extend the concessionary import-duty facility for raw sugar until May 30, 2022.

The facility was scheduled to expire Monday (February 28, 2022).

On October 14 last, the customs wing cut the Regulatory Duty (RD) by 10 per cent on import of sugar to rein in its price.

The customs wing reduced RD to 20 per cent from 30 per cent on import of raw sugar, beet sugar, and cane sugar of specified categories.

Sources said the NBR would issue a Statutory Regulatory Order (SRO) extending the concessionary taxes within this week.

However, NBR sources said they had no intention yet to reduce duty taxes of other essential commodities as most of them were already tax exempted or enjoying concessionary duties.

Recently, Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Center for Policy Dialogue (CPD) also proposed that the NBR cut taxes on essential commodities.

Talking to the FE, FBCCI President Md Jashim Uddin said the burden of tax and VAT on the consumers should be eased following the recent global unrest due to the Ukraine-Russia war.

"People blame businesses unnecessarily for the price hike while tax cuts on the essential products could minimise the pressure of international price hike," he said.

Globally, the government controls prices of some 16 essential commodities to protect consumers' interest, he added.

"Prices of essentials in the world market are going up. Situation might be kept under control if the government brings down the taxes without thinking about only revenue collection," he added.

Prices of cooking oil should be readjusted as the tax was imposed on lower value earlier but now tax incidence has gone up with the increase of its value, he said.

"Our neighbouring country India has adjusted taxes on some 17 items thrice considering the recent situation while we haven't reviewed once yet," he added.

Executive Director of City Group Biswajit Saha said prices of palm, soybean and sugar were skyrocketing in the international market.

"We have proposed that the commerce ministry consider the global price hike on essential commodities," he said.

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