NBR revises assessment value of refrigerators

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Kamrun Nahar National Board of Revenue (NBR) has reduced the assessment value of imported refrigerators from US$ 1.0 to 75 cents per litre, said an NBR official. The importers said the price of refrigerators will come down following the NBR decision. The tax administration hiked the assessment value from the previous 60 cents to US$ 1.0 per litre on August 29 in the backdrop of allegations of under-invoicing by the importers. The increased value could have raised the price of per unit of refrigerator from Tk 6000 to Tk 12,000, depending on model and capacity. The price increase will now be between Tk 2000 and Tk 4000, said the importers. "We sat with the importers and reduced the assessment tax," Shah Alam Khan, NBR member (customs), told the FE Thursday. A leader of the association of the electrical and electronics goods importers also confirmed the refixation of assessment value. "We were engaged in a dialogue with NBR soon after Eid-ul-Fitr along with the FBCCI. The assessment value has now been fixed as an indicative price and no SRO (statutory regulatory order) will be issued. After Eid-ul-Azha we will sit again and finalise the assessment value," said Md Sanaullah, president of Bangladesh Electronics Merchants' Association. Earlier, a visit to the refrigerator market by this correspondent saw a sort of disorder ahead of the Eid-ul-Azha after the NBR raised the assessment value resulting in increase in refrigerator price at the retail level. Some shops increased their prices soon after Eid-ul-Fitr while some other increased it one week ago. Retailers have claimed that refrigerator sales have declined both at the dealer and retail levels. NBR has issued four orders since December last year, making the market volatile as they stopped releasing the items at port, said the importers. About one-third of about 0.8 million refrigerators sold in the country every year are sold during Eid-ul-Azha. Most of the shops have not yet been able to start their Eid sales except for the Walton which is assembling refrigerators in the country. "Two NBR officials visited Thailand and saw the retail price of refrigerators there and made allegations that we do under-invoicing. But they should consider the price of manufacturers from whom we buy," Mr Sanaullah added. About 700 containers loaded with refrigerators are now stuck in the port, said an importer. "But the importers did not unload their consignments soon after Eid-ul-Fitr from the Chittagong port in fear of losses triggered by the sudden rise in import duty," said Mr Sanaullah. The importers have to pay $72 a day for a container as fine. "We have to adjust the big financial losses that we incurred at the port due to NBR's whimsical decision," said the association president.