NBR fixes tariff value of lubricating oil
Thursday, 6 December 2007
Doulot Akter Mala
The National Board of Revenue (NBR) has fixed tariff value of lubricating oil and lube base oil to remove anomalies in the valuation of the imported product.
The board Wednesday issued a Statutory Regulatory Order (SRO) in this connection.
The tariff value for per tonne of lubricating oil has been fixed at US$ 1100 and lube base oil $800 with an effect from November 25, 2007.
In the current fiscal, the government has imposed specific duty at the rate of Tk 20,000 ($289) and Tk 39,000 ($565) per tonne on base lubricating oil and finished lubricants respectively.
In order to avoid complexities in determining the value of lubricant and to reduce rate of litigations, the government had imposed the specific duty.
Earlier, the value of the lubricating oil was determined by its import value.
As there are different categories of lubricating oil at different prices. The importers of such oil have been facing problems due to imposition of the specific duty.
Sources said the product is widely used in irrigation pump, but imposition of a flat duty rate pushed up import cost resulting in higher irrigation cost, despite its lower import cost.
The NBR has taken the decision to encourage the local base lube oil importers supply locally produced finished products at comparatively lower price than that of imported ones, an NBR senior official said.
"The board has taken the decision after a series of meetings aiming to resolve the anomalies in duty rates between imported finished oil and its raw materials," he said.
The country imports about 80 per cent of base lube oil requirements and only 20 per cent of finished lubricants to meet the annual demand.
The National Board of Revenue (NBR) has fixed tariff value of lubricating oil and lube base oil to remove anomalies in the valuation of the imported product.
The board Wednesday issued a Statutory Regulatory Order (SRO) in this connection.
The tariff value for per tonne of lubricating oil has been fixed at US$ 1100 and lube base oil $800 with an effect from November 25, 2007.
In the current fiscal, the government has imposed specific duty at the rate of Tk 20,000 ($289) and Tk 39,000 ($565) per tonne on base lubricating oil and finished lubricants respectively.
In order to avoid complexities in determining the value of lubricant and to reduce rate of litigations, the government had imposed the specific duty.
Earlier, the value of the lubricating oil was determined by its import value.
As there are different categories of lubricating oil at different prices. The importers of such oil have been facing problems due to imposition of the specific duty.
Sources said the product is widely used in irrigation pump, but imposition of a flat duty rate pushed up import cost resulting in higher irrigation cost, despite its lower import cost.
The NBR has taken the decision to encourage the local base lube oil importers supply locally produced finished products at comparatively lower price than that of imported ones, an NBR senior official said.
"The board has taken the decision after a series of meetings aiming to resolve the anomalies in duty rates between imported finished oil and its raw materials," he said.
The country imports about 80 per cent of base lube oil requirements and only 20 per cent of finished lubricants to meet the annual demand.