Imported finished goods likely to be costlier
Tuesday, 9 June 2009
Doulot Akter Mala
Imported finished products might be expensive for the consumers as the government might raise duties on them in the new fiscal year, beginning on July 1, to protect the interest of local manufacturing companies, a finance ministry official said Monday.
The government is likely to enhance advance trade VAT (ATV) to 2.5 per cent from existing 1.5 per cent on import of commercial goods, he said.
The government has adopted a number of fiscal measures for 2009/10 to help the local industries compete with the imported products and discourage import of unnecessary luxury goods, officials said.
The government is also going to impose a regulatory duty (RD) at 5.0 percent over the existing import duty rate on some finished goods. Importers of such finished goods might have to pay highest 30 per cent duty against the existing 25 per cent, an official said.
Currently, there are four-tier duty rates -- 3.0, 7.0, 12, and 25 -- per cent for import of goods ranging from basic raw materials to finished goods.
Duty slab for basic raw materials will be lowered to 5.0 per cent from exiting 7.0 per cent keeping the other duty slabs same, the official said.
It will also fix a minimum tariff value for a number of products that are now being imported under normal duty structures.
Disputes over price determination of a number of imported products, including petroleum oil, lubricating oils, jet fuels, kerosene, motor spirit and biscuits will be resolved through fixation of new tariff value.
Officials said the government is imposing the new tariff value to check price fluctuation in the local market in line with the international market.
Petroleum oils and oils obtained from bituminous mineral, and crude could be imported at $32 per barrel.
Minimum prices for sweet biscuits imported from Asian countries might be fixed at $3 per kilogram while $4 for biscuits imported from other countries. Tariff value for waffles and wafers will be $3.50 for Asia origin while $4.5 for other countries.
The minimum price is expected to be fixed at $ 0.31 for motor spirit of H.B.O.C type and other categories motor spirits including aviation spirits, spirit type jet fuel, white spirit, naphtha, J. P 1. kerosene type jet fuels, J. P 4 kerosene type jet fuels, other kerosene type jet fuels, other kerosene type jet fuels, other kerosene, light diesel oils, high speed diesel oils and furnace oil.
Import value of lubrication oil and lube base oil (bulk) will be fixed at $1100 per tonne and $ 800 per tonne respectively.
Minimum price of mineral oil and liquid paraffin might be fixed at $ 0.31 per litre while it will be $ 0.25 for per unit of D size dry cell battery ((non-alkaline), $ 0.15 for C size, $ 0.10 for AA size, $ 0.05 for AAA size.
Tariff value for all size of alkaline batteries will be $0.40 per unit from the next fiscal.
Taxes on SIM card will, however, remain same at Tk 800 in the upcoming fiscal.
Imported finished products might be expensive for the consumers as the government might raise duties on them in the new fiscal year, beginning on July 1, to protect the interest of local manufacturing companies, a finance ministry official said Monday.
The government is likely to enhance advance trade VAT (ATV) to 2.5 per cent from existing 1.5 per cent on import of commercial goods, he said.
The government has adopted a number of fiscal measures for 2009/10 to help the local industries compete with the imported products and discourage import of unnecessary luxury goods, officials said.
The government is also going to impose a regulatory duty (RD) at 5.0 percent over the existing import duty rate on some finished goods. Importers of such finished goods might have to pay highest 30 per cent duty against the existing 25 per cent, an official said.
Currently, there are four-tier duty rates -- 3.0, 7.0, 12, and 25 -- per cent for import of goods ranging from basic raw materials to finished goods.
Duty slab for basic raw materials will be lowered to 5.0 per cent from exiting 7.0 per cent keeping the other duty slabs same, the official said.
It will also fix a minimum tariff value for a number of products that are now being imported under normal duty structures.
Disputes over price determination of a number of imported products, including petroleum oil, lubricating oils, jet fuels, kerosene, motor spirit and biscuits will be resolved through fixation of new tariff value.
Officials said the government is imposing the new tariff value to check price fluctuation in the local market in line with the international market.
Petroleum oils and oils obtained from bituminous mineral, and crude could be imported at $32 per barrel.
Minimum prices for sweet biscuits imported from Asian countries might be fixed at $3 per kilogram while $4 for biscuits imported from other countries. Tariff value for waffles and wafers will be $3.50 for Asia origin while $4.5 for other countries.
The minimum price is expected to be fixed at $ 0.31 for motor spirit of H.B.O.C type and other categories motor spirits including aviation spirits, spirit type jet fuel, white spirit, naphtha, J. P 1. kerosene type jet fuels, J. P 4 kerosene type jet fuels, other kerosene type jet fuels, other kerosene type jet fuels, other kerosene, light diesel oils, high speed diesel oils and furnace oil.
Import value of lubrication oil and lube base oil (bulk) will be fixed at $1100 per tonne and $ 800 per tonne respectively.
Minimum price of mineral oil and liquid paraffin might be fixed at $ 0.31 per litre while it will be $ 0.25 for per unit of D size dry cell battery ((non-alkaline), $ 0.15 for C size, $ 0.10 for AA size, $ 0.05 for AAA size.
Tariff value for all size of alkaline batteries will be $0.40 per unit from the next fiscal.
Taxes on SIM card will, however, remain same at Tk 800 in the upcoming fiscal.