NBR hope to mop up additional revenue from customs dashed

FE Team | Published: June 30, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Doulot Akter Mala
The changes in duty structure proposed initially in the national budget for the fiscal 2007-08 will cause losses to the tune of Tk 4.09 billion (409 crore) to the public exchequer.
The government has reduced the proposed duties on a number of products, which will cover 450 HS (Harmonised System) code products.
In the budget unveiled on June 7 last, the government projected additional revenue earnings of Tk 4.96 billion (496 crore) through readjustment of the duty structure.
But, in the budget that was approved finally, the government has reduced the duties on some products in line with suggestions from trade bodies as well as common people.
Import duty on telecommunication equipment, including capital machinery and VoIP, will now be 10 per cent instead of the 15 per cent proposed earlier.
This change will cause Tk 1.70 billion revenue loss in the next fiscal.
The government has withdrawn the duty of Tk 300 proposed on mobile and fixed telephone sets, which will cause Tk 370 million loss in revenue.
It has also withdrawn the 10 per cent duty proposed on pulp, which is a raw material of paper, and this will cause Tk 140 million revenue loss.
The government will lose Tk 500 million (50 crore) for the cut in duty on computer accessories from 10 per cent to 5 per cent.
In the amended budget, the government has withdrawn 20 per cent supplementary duty on Air Conditioner (A/C), which will cause Tk 120 million loss in the upcoming fiscal.
The government has reduced the duty on powdered milk (bulk) from 25 per cent to 15 per cent, which will cause Tk 480 million revenue loss in the fiscal 2007-08.
It will also lose Tk 780 million for bringing down the duty on mobile SIM card to 20 per cent from 60 per cent.
In the budget, the government proposed imposition of 60 per cent supplementary duty on mobile SIM card, which is enjoying zero tariff facility in the current fiscal.
Under the duty restructuring, the new budget proposed on June 7 had imposed the lowest duty slab of 10 per cent on 530 items, which were earlier enjoying zero-tariff import facility.
In the amended budget, the government has kept a provision of 5.0 per cent duty slab in special cases like textile machinery import.
The textile industry is enjoying zero tariff facility in import of textile machinery.