NBR eyes Tk 5b extra revenue for readjusting duty structure

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Doulot Akter Mala
The National Board of Revenue (NBR) looks forward to earning Tk 5.0 billion in additional revenue in fiscal 2007-08 for readjustment of the duty structure on the proposed budget.
The government has proposed withdrawal of a 4.0 per cent Infrastructure Development Surcharge (IDSC) in the recent budget for the upcoming fiscal.
Sources stated that the NBR would incur about Tk 12.50 billion (1250 crore) due to withdrawal of these para-tariffs.
The government, however, tried to offset the loss by readjusting customs duty on other products.
The NBR estimates that it will able to increase revenue by Tk 4.50 billion (450 crore) from import duty and Tk 500 million (50 crore) from supplementary duty in the fiscal 2007-08 for the readjustment of customs duty.
Recently, the NBR has sent a report to the finance ministry elaborating the positive affect of proposed budget on revenue earning.
The board estimated a net loss about Tk 8.0 billion for withdrawal of customs duty and IDSC and readjustment of a duty slab from 5.0 per cent to 10 per cent, a finance ministry source said.
The provisions for releasing capital machinery, raw materials and parts of machinery on payment of 5.0 per cent duty will remain unchanged.
The government will also keep the existing provision of duty-free import of capital machinery against the indemnity bond for 100 per cent export-oriented industry.
The NBR also estimates the probable revenue loss of Tk 3.11 billion (311 crore) for withdrawal of 4.0 per cent surcharge on the product category under 25 per cent duty slab.
On the contrary, the authority also estimated a revenue gain of Tk 300 million (30 crore) for upward adjustment of customs duty slab from 12 per cent to 15 per cent.
The government has estimated Tk 1.50 billion (150 crore) in additional revenue earning on account of upward adjustment of supplementary duty slab from 15 per cent to 20 per cent.
On the other hand, it will lose Tk 913 million (91.35 crore) and Tk 100 million (10 crore) for readjustment of supplementary duty from 25 per cent to 20 per cent and 65 per cent to 60 per cent.
Meanwhile, the members of the business community sought revisions of increased import duty on industrial raw materials and imposition of duties on capital machinery, fearing its adverse impact on local industries.