TCB to get tax benefit to supply essentials at fair prices

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Doulot Akter Mala
The government is set to give tax benefit to Trading Corporation of Bangladesh (TCB) to help the state-owned entity supply essential commodities at reasonable prices in the local market.
Presently, TCB has to pay 6.25 per cent tax to procure essential commodities from suppliers, while the private sector wholesalers are not required to pay the same.
The move has been taken in line with the recommendation of Ministry of Commerce (MoC), as it is devising various measures to rein in essentials' prices.
It has urged the National Board of Revenue (NBR) to consider waiver of the 4.0 per cent income tax and 2.25 per cent Value Added Tax (VAT) that the TCB pays at the time of procuring products from suppliers.
"We are actively considering waiver of the tax for helping the state organisation, so that it can supply commodities at reasonable prices and intervene in the essentials market," said a senior tax official.
NBR has offered the same facility for five essential commodities for two months during Ramadan following the commerce ministry's request. It has helped TCB to fix lower prices of those commodities. Revenue board will send the matter for finance minister's approval by this week, he added.
TCB director Mahfuzur Rahman Sarker said the entity has been facing problems to supply essential commodities at lower prices in the market, as it has to add the amount paid as tax with the product prices.
"TCB's prices of essential commodities increased by 6.25 per cent than those of the private sector wholesalers, as the organisation fix prices with the payable taxes," he said.
"TCB is now supplying sugar, red lentil and edible oil to the consumers after procuring those from the local market. So, it deserves the government's support to deliver essential commodities at cheaper prices than their market prices."
According to Article XVII of the General Agreement on Trade and Tariff (GATT), a state-owned commercial organisation can get special facility. As a WTO member country, Bangladesh should consider such facility for TCB, he added.
TCB has no production of its own. It sells locally procured or imported essential commodities at reasonable prices.