Tariff structure in customs law to be rationalized
Friday, 18 December 2009
Doulot Akter Mala
The government has taken a first-ever move to rationalise tariff structure in customs law slashing higher duty from basic raw materials, that is hindering industrial growth.
"We are going to revise the first schedule of customs rationalising taxes and duties on import items. The new tariff structure will come into effect from fiscal 2010-2011," said National Board of Revenue (NBR) Chairman Nasir Uddin Ahmed.
Duty on basic raw materials should be lower than that on intermediate or finished goods, but some items fall under higher duty structures which should be revised, he said.
The NBR has formed a high-powered committee comprising experts from both private and public sectors to reform the schedule, he said.
"The committee will submit a report recommending measures to revise the customs first schedule. The NBR will make the report public on January 27 next in a formal event," he said.
The government will incorporate the measure in the budget for 2010-2011, he added.
There are some loopholes in the first schedule that create confusions among businesses in determining taxes on import items, he added.
"We are going to remove all tariff anomalies for accelerating industrial growth," said a senior member of the committee.
There is higher tax on some raw materials of agro-processing industries, which is hindering growth of the sector, he said.
Supplementary duty (SD) is a trade-neutral tax, but it is now imposed heavily on import items while some domestic industries are too much protected with it, he added.
Some local businesses are enjoying tariff protection but consumers' interest is totally ignored, he said adding 'consumers are in dark about the facility."
"We will recommend measures that will help the country to diversify export," he added.
The country is facing difficulties to diversify its export products due to higher tariff structure on raw materials, excepting ready-made garments, he said.
Tariff structure should be reviewed every year within the existing context to make revenue law business-friendly, he said.
The government has taken a first-ever move to rationalise tariff structure in customs law slashing higher duty from basic raw materials, that is hindering industrial growth.
"We are going to revise the first schedule of customs rationalising taxes and duties on import items. The new tariff structure will come into effect from fiscal 2010-2011," said National Board of Revenue (NBR) Chairman Nasir Uddin Ahmed.
Duty on basic raw materials should be lower than that on intermediate or finished goods, but some items fall under higher duty structures which should be revised, he said.
The NBR has formed a high-powered committee comprising experts from both private and public sectors to reform the schedule, he said.
"The committee will submit a report recommending measures to revise the customs first schedule. The NBR will make the report public on January 27 next in a formal event," he said.
The government will incorporate the measure in the budget for 2010-2011, he added.
There are some loopholes in the first schedule that create confusions among businesses in determining taxes on import items, he added.
"We are going to remove all tariff anomalies for accelerating industrial growth," said a senior member of the committee.
There is higher tax on some raw materials of agro-processing industries, which is hindering growth of the sector, he said.
Supplementary duty (SD) is a trade-neutral tax, but it is now imposed heavily on import items while some domestic industries are too much protected with it, he added.
Some local businesses are enjoying tariff protection but consumers' interest is totally ignored, he said adding 'consumers are in dark about the facility."
"We will recommend measures that will help the country to diversify export," he added.
The country is facing difficulties to diversify its export products due to higher tariff structure on raw materials, excepting ready-made garments, he said.
Tariff structure should be reviewed every year within the existing context to make revenue law business-friendly, he said.