'Specific' duty on lubricant import imposed
Wednesday, 10 October 2007
Naim-Ul-Karim
The National Board of Revenue (NBR) has implemented the budget proposal relating to specific customs duty at the rate of Tk 39,000 per tonne against the import of lubricating oil to help the country's farming sector, sources said.
"We are hoping that the flat rate of duty will help keep the supply and retail prices of monograde lubricants stable before the start of the boro season," an official said.
The customs duty was specified as per budget proposal, Rashidul Ahsan Chowdhury, member customs of NBR, said.
He said: "The imposition of specific duty will also help check price manipulation that is done to evade customs duty at the import stage through under valuation."
Sources said the NBR has imposed the flat rate of duty on import of lubricating oil following repeated requests from the Ministry of Agriculture.
A source said this year farmers in the flood affected areas have started preparatory work for Boro crop earlier than usual time because of the damage caused to Aman crop by two consecutive floods.
"The NBR took the decision before the boro-cultivation season to avert short supply of lubricating oil and help curb prices in order to enable farmers reap optimum benefit," an official said.
They said the lubricating oil is used for running deep tube wells, power tillers, tractors and floating pumps.
According to the statistics of the Ministry of Agriculture, the total demand for lubricants in the year 2007-08 by farming sector was estimated at 26,400 metric tonnes.
The National Board of Revenue (NBR) has implemented the budget proposal relating to specific customs duty at the rate of Tk 39,000 per tonne against the import of lubricating oil to help the country's farming sector, sources said.
"We are hoping that the flat rate of duty will help keep the supply and retail prices of monograde lubricants stable before the start of the boro season," an official said.
The customs duty was specified as per budget proposal, Rashidul Ahsan Chowdhury, member customs of NBR, said.
He said: "The imposition of specific duty will also help check price manipulation that is done to evade customs duty at the import stage through under valuation."
Sources said the NBR has imposed the flat rate of duty on import of lubricating oil following repeated requests from the Ministry of Agriculture.
A source said this year farmers in the flood affected areas have started preparatory work for Boro crop earlier than usual time because of the damage caused to Aman crop by two consecutive floods.
"The NBR took the decision before the boro-cultivation season to avert short supply of lubricating oil and help curb prices in order to enable farmers reap optimum benefit," an official said.
They said the lubricating oil is used for running deep tube wells, power tillers, tractors and floating pumps.
According to the statistics of the Ministry of Agriculture, the total demand for lubricants in the year 2007-08 by farming sector was estimated at 26,400 metric tonnes.