Bangladeshi consumers had to pay additional Tk 1.14 trillion in last fiscal year (FY'18) due to high tariffs on imports, the Consumers Association of Bangladesh (CAB) said on Saturday.
It said the country's import tariff on an average was 25.64 per cent which was the highest in South and Southeast Asia.
This was disclosed at the CAB's annual conference on the cost of living and consumers' interests held at Sagor-Runi Auditorium of Dhaka Reporters Unity (DRU).
CAB president Ghulam Rahman presented the report at the conference. CAB secretary Humayun Kabir Bhuiyan, energy adviser Dr M Shamsul Alam and health adviser Dr Prof Mohammad Saiful Islam were, among others, present.
The CAB report showed that the cost of living in Dhaka city rose by 6.0 per cent in 2018 compared to that of 2017 due to a surge in the prices of rice, fish, vegetables, toiletries, tea and other essentials.
It said the cost of goods and services in the capital also increased by 5.19 per cent during the period.
However, the surge was lower than that of 2017 when living expenditure witnessed an 8.44 per cent and goods and services a 7.17 per cent spike than that of 2016, it added.
The report prepared taking into account 114 food products, 22 daily essentials and 14 services pointed out that high import tariff had been hurting local consumers.
Citing a recent study conducted by local think-tank Policy Research Institute of Bangladesh
(PRI) it said local consumers had to pay additional US$ 14.22 billion (Tk 1.14 trillion) for high tariffs on imports.
On an average, import tariff in Southeast Asian countries was 4.73 per cent while 12.19 per cent in South Asia in 2016.
"Import tariff structure in Bangladesh is still like that of the Pakistan period just for the protection of local industries."
CAB suggested reviewing import tariffs and lifting any kind of ban on import of essentials like salt to give the consumers some relief.
Mr Ghulam Rahman said if the government evaluates the current import tariff structure, people's living cost would decline.
"We expect that people's incomes will go up notably so that inflation can't hurt anyone," he added.
The report showed that rice prices declined in September 2017 but increased by 8.91 per cent in 2018.
Fish prices went up by 13.5 per cent while vegetables by 9.37 per cent and liquid milk by 10.33 per cent during the period.
Meat, tea, egg, betel leaf and betel nut, local and foreign clothes, local sari, towel, coconut oil, DWASA supply water and house rent also witnessed a 3.0-10.64 per cent hike. Prices of toiletries including soap went up by 20 per cent in 2018.
But prices of sugar, salt, pulses, garlic, green chilli and some other essentials declined last year while prices of fossil fuel, electricity, gas, edible oil and powdered-milk remained static.
To keep the prices within the reach of the common people, the association also placed a 10-point proposal including formation of consumers affairs ministry.
It recommended rice contract farming on a pilot basis so that the government can buy rice directly from the farmers and launching crop insurance for such growers.
The CAB stressed the need for forming a 'price stabilisation fund' to help reduce fuel prices.
It proposed reducing import tariffs notably and lifting any kind of ban on import of essentials like salt.
The association urged the government to properly implement the consumers' rights protection law, competition act, safe food act and drug policy.
It also proposed strengthening the Bangladesh Standards and Testing Institution and Drug Administration for the welfare of consumers.
To ensure transparency and competition, the government should scrap 'the speedy supply of power and energy act', CAB said.
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