The government is set to make it mandatory for traders to take trade licences for 12 essential commodities aiming to help boost its revenue and prevent syndication, officials said.
The items include paper and paper products, various products made of vegetable fibres, electrical and radio products, medical and surgical equipment, glass and glassware, bicycle and its spare parts, sanitary and water supply fittings, edible oil, sugar and salt.
As part of the move, the ministry of commerce (MoC) has sent a proposal to the finance division, seeking approval of the items to be brought under the licensing coverage.
The senior secretary of the finance division has sent a brief summary to the finance minister for his consent on the issue.
Last year the MoC formed a six-member committee to take necessary steps in this regard. Besides, the cabinet division took a decision in this regard.
"We have taken initiative to bring the commodities under licensing coverage aiming to boost government earnings," senior secretary of the MoC Hedayetullah Al Mamoon told the FE on Friday.
"MoC has submitted a fresh proposal for fixing licence fees for some products. Presently, traders of these items at retail, wholesale and distribution levels do not need to take licence to run their business," a high official who is familiar with the issue told the FE.
Traders of these items will have to take licence on revision of the essential commodities order. Revenue earnings of the government will increase and the tax base will also expand, he mentioned.
On the other hand, the move has been taken aiming to keep the supply chain, prices and market situation of essential commodities stable. Hoarding of most of these items by some dishonest traders is a common practice in the country, he also said.
These goods are being brought under the licensing coverage by revising the Control of Essential Commodities order, a source concerned said.
An official of the finance division said the finance minister has already given his consent to the issue recently.
Presently, more or less 40 essential items are under different ministries, a high official of MoC said.
Iron and steel materials, cement, cotton cloth (wholesale and retail), cotton yarn (wholesale and retail), milk food, cigarette (wholesale and distributor) and several other items have been brought under the licensing system, he said.
The ministries of health and agriculture have already brought some essential commodities under licensing coverage, the deputy secretary said.
According to the proposal, licence fees for the proposed items will range from Tk 1,500 to Tk 2,500. Renewal fees will be between Tk 800 and Tk 2,000.
Mahbub Ahmed, Senior Secretary, Finance Division, could not be reached for his comments about the issue.
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