NBR\'s \'no\' to BTC empowerment

The National Board of Revenue (NBR) has expressed reservations about proposed empowerment of the Bangladesh Tariff Commission (BTC) by incorporating a provision for taking the commission's advice while fixing tariffs.
The revenue board's refusal came following a recent proposal seeking a change to that effect in a section of the amendment bill on the BTC law 1992.
According to the proposal that seeks a change in the Section 6(4) of the bill, the government will have to take advice from the commission on tariff measures, superseding any other laws.
The NBR thinks the proposed provision may affect the government's customs policy and collection of tax revenue.
The proposal came at a recent meeting, chaired by a senior secretary of the ministry of commerce (MoC). The MoC held the meeting to discuss amendments to the BTC law 1992.
In the meeting, the NBR representative gave a negative opinion on the change in the provision. Later, the NBR also wrote to the MoC and informed it about their opinion.
"BTC is an entity which gives advice. Relevant ministries or departments will examine and scrutinise advice. Advice can be followed if they find it perfect," the NBR said.
The NBR or Internal Resources Division (IRD) scrutinise proposals made by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) or other chamber associations while the budget is being prepared, it said.
"Implementation of recommendations of the NBR-FBCCI budget consultative committee on any types of changes in tariff line, change in its description, amendments or revision of rates of customs duty, in case of urgency, will face hindrance with the proposed change in the section of BTC law," the NBR said.
After a detailed analysis of the amendment proposals, the NBR has found the proposed provision 'some sort of mandatory' for the board to comply with, said a senior customs official.
The NBR proposed incorporating of a flexible provision in the BTC law under which the government may feel free to implement the BTC advice, if it finds those appropriate after examination, he said.
Dr M A Taslim, economics professor at Dhaka University, said tariff fixation-related tasks should be carried out by the tariff commission, not by the NBR.
"NBR is an executing agency. It should not determine the tariff rates," said Dr Taslim, also a former chairman of the BTC.
Responding to a query on the capacity of the BTC, he said the capacities of the commission can be strengthened shortly.
The BTC is a statutory body of the government which works on rational protection of local industries.
The commission, headed by a chairman, is also the designated authority to investigate complaints of dumping and import of subsidised products and recommend anti-dumping duties, countervailing measures and safeguard measures against harmful import of goods.
[email protected]