Concerned over 'non-cooperation' of the revenue board and Chittagong Port Authority in necessary tax adjustments, Bangladesh's apex trade body says efforts of the public agencies concerned should be well-matched with the government desires to cool down the commodity market.
The president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Md. Jashim Uddin said the government recently made a duty-adjustment of the essentials to give some sorts of relief to the consumers from the volatile commodity market.
"But the National Board of Revenue and Chittagong Port Authority (CPA) are not properly complying with the government instructions, causing immense suffering to the businesses, specially in the crucial time," he says.
The federative body of businesses came up with the observations following complaints from many businesspeople that the NBR and the CPA are charging duties under previous structure that was before the government cut 10-percent VAT on the imports of refined and non-refined soyabean and palm oils.
"If the desires of the departments concerned are not matched with the government desires, it would cause sabotage. The government wants something but it does not happen. What it means, sabotage is happening," he said while presiding over a meeting.
The FBCCI arranged the view- exchange meeting with the manufacturers, wholesalers and retailers of necessary commodities to keep the prices of commodities stable during the holy month of Ramadan, as reports say prices kept rising despite government market intervention through limited rationing and fiscal measures.
Mr Jashim Uddin informed that the federation has formed a 46-member market-monitoring committee to oversee whether 46 essential products are being sold at the prices fixed by the government.
He says they will also collect and review the market prices of essential commodities, supply situation, production and international market prices and pay spot visit to the market.
Noting that the prices of various raw materials and commodities have gone up on the world market, the FBCCI president demanded of the government to adjust taxes and duties.
"Reducing duty and tax rates would not affect government's revenue collection as the prices and shipping costs are high, rather tax adjustments would provide relief to the consumers," Mr Jasim says about the urgency of further fiscal measures.
The FBCCI president said that sky-high prices of commodities and raw materials, and ship fares internationally due to the situation stemming from Covid-19 and the Russia-Ukraine war, the credit limit of the businesses has been exceeded.
To address the situation, the apex chamber has written a letter to Bangladesh Bank to increase the existing working capital-loan limit by at least 40 per cent, the FBCCI president informed. At the same time, he urged extending loan- moratorium facility till June 30, 2022.
Director of TK Group Md. Shafiul Ather Taslim told the meet that they officially informed the CPA on March 7 last that a ship carrying 12,000 tonnes of crude soybean oil would arrive in the port.
The ship reached the port on March 17 and completed necessary formalities on March 21. "When we submitted required documents to release the goods, the authorities demanded 15 per cent instead of 5.0 per cent (tax)," he said.
He said the NBR people charged them the previous rate on grounds that the tentative noting about the ship was issued on March 7.
"Is it logical?," he posed the question, on a note of frustration.
"When the government instructed reducing price after the VAT cut, we cut the price of the oils in our stock even after paying 15 per cent," he adds.
"It costs us Tk 800 million. We did it considering the market. Now what will happen to us? Other companies are also facing the same," the TK group director lamented.
Biswajit Saha, director of City Group and president of the Bangladesh Oil Mills Association, said that there is no chance to stockpile edible oil as they have to deliver the product within 15 days of the issuance of sales order.
Quazi Abdul Hannan of the Consumers Association of Bangladesh (CAB) complained that despite having no shortage of supplies, extortion hikes the price at retail level.
He says the price difference between the wholesale and retail level is too high "due mainly to tolls collected by traffic police" at various level.
"It needs to be addressed as quickly as possible," he says.
Joining the meeting online, President of Rangpur Chamber of Commerce and Industry Mostofa Sohrab Chowdhury Titu echoed the same reason and called for an end to extortion.
Among others, FBCCI Senior Vice-President Mostofa Azad Chowdhury Babu, former Vice- President Md. Halal Uddin, Director M.G.R. Nasir Majumder, Md. Rejaul Kariem Rejnu, CIP, Mohammad Anwar Sadat Sarker, Tabarakul Tosaddek Hossain Khan, Bijoy Kumar Kejriwal, Joshoda Jibon Debnath, Harun or Rashid, Dr. Nadia Binte Amin, Abu Hossain Bhuiyan (Ranu) and the Secretary-General Mohammad Mahfuzul Hoque were present at the discussion meeting.
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