Duty, VAT on MS rod, edible oil, powdered milk may undergo revision

Doulot Akter Mala | Published: June 09, 2008 00:00:00 | Updated: February 01, 2018 00:00:00

The government is to exempt some major import items from mandatory pre-shipment inspection (PSI) in the budget for fiscal 2008-09, which will be announced today (Monday).

The items are: limestone flux including limestone and other calcareous stones of a kind used for the production of lime or cement, raw hides and skins, wet blue hides and skins, diamond (rough or finished), and gold bullion.

The government has taken measures to waive 15 per cent value added tax (VAT) on import of MS rod to rein in abnormal hike in prices of the item. It will, however, impose 15 per cent VAT on sales turnover of chewing tobacco, repair and servicing organisations.

The National Board of Revenue (NBR) is expected deduct 20 per cent of the average price of reconditioned vehicles instead of existing 30 per cent while calculating the duty payable.

Besides, it will allow 5.0 per cent depreciation for 1-year old, 10 per cent for 2-year old, 20 per cent for 3-year old and 30 per cent for 4-year old reconditioned vehicles.

In the outgoing fiscal, the rates were at zero, 10 per cent, 15 per cent and 20 per cent respectively.

The government might also increase the time to 365 days from existing 120 days to consider a vehicle as reconditioned.

A reconditioned car should have to clock a minimum of 10,000 kilometer before it can be exported to Bangladesh, which was not specified earlier.

Supplementary Duty (SD) on microbus might be reduced to below 30 per cent from existing 60 per cent. Importers said prices of microbus might get reduced by Tk 40,000-50,000 each if the government lowered the SD on the vehicle.

On import duty, the government might introduce flat-rate duty on import of edible oil, powdered milk aiming to stabilise its prices in the local market.

The government might also impose 1.0 per cent duty on temporary import of goods, which previously were duty-free and used to be released by the customs against submission of indemnity bond.

The existing flat-rate duty on refined sugar might be increased to Tk 6000 per tonne from Tk 5000 per tonne.

Import duty for computer and computer accessories might be lowered to 3.0 per from 5.0 per cent.