Commerce Ministry’s proposal sparks NBR action for import duty reduction on Sugar, Edible Oil, and Dates

BM Report:

In an effort to maintain stable commodity prices, the National Board of Revenue (NBR) is considering implementing the commerce ministry’s recommendation to waive duties on imported goods prior to the month of Ramadan.

“The Ministry of Commerce has proposed to reduce the duty of some products to keep the prices of daily commodities stable during Ramadan,” said NBR chairman Abu Hena Rahmatul Muneem during a press briefing at the NBR’s headquarters in the capital’s Agargaon, on Thursday.

“We received that offer. NBR is working on it. If the duty is reduced, it is believed that the price of the three products will decrease at the consumer level,” Mr. Muneem added.

On Monday, the commerce ministry sought waiver of import duties on edible oil, sugar and dates with an eye to keeping market supply sufficient and prices stable during the fasting month.

Although, there are five types of customs duties and taxes on the import of 2 million tons of sugar per year. Earlier, the import duty was fixed at Tk 3,000 per tonne of raw sugar. Last November it was reduced to half; Tk 1,500. The import duty currently fixed at Tk 3,000 on refined sugar will remain effective till March 1.

The Ministry of Commerce has requested the NBR to withdraw the 30 percent regulatory duty on the import of these two types of sugar.

Currently, VAT on import of edible oil is 15 percent. The Commerce Ministry requested NBR to reduce VAT from 15 percent to 5 percent on Monday.

Mr. Muneem added that tomorrow’s International Customs Day would be appropriately observed by the NBR. Abul Hasan Mahmood Ali, the minister of finance, is anticipated to be in attendance.