Import tax breaks failed to lower commodity prices to expected level: NBR
The NBR chairman said tax exemptions will be withdrawn once the situation improves
Despite tax exemptions on imports, prices of several essential commodities have not dropped to the expected levels, said National Board of Revenue (NBR) Chairman Abdur Rahman Khan.
"We have also estimated how much tax can be reduced per kg on any product at the consumer level," he said in a press briefing at the NBR Headquarters in Dhaka on Monday (9 December).
The interim government has introduced various tax exemptions for the import of essential commodities, including rice, oil, eggs and onions in recent months.
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"However, we will have to come out of the tax exemption culture. Development partners are asking us [to get out of this practice] for our own good," he said.
Tax exemption should be withdrawn from wherever possible but no measures should be forced on the traders. No steps will be taken without discussions with traders, Abdur Rahman said.
He also said that irregularities in the market will increase if existing irregularities are tolerated. "Someone has to protest it."
Rahman said the interim government reduced import duties because of the ongoing economic crisis. "Duties will be reverted back to their previous levels once the situation improves."
The NBR chairman proposed to go for a single VAT rate to that end.
Hinting that some tax exemption facilities will be withdrawn soon, he said, "Some [statutory regulatory] orders have been cancelled. Some more will follow."
Meanwhile, the government has increased the price of soybean oil by Tk8 per litre.
"Traders say the cost of edible oil has increased," the NBR chairman said, explaining the reason behind the hike.
Noting that Bangladesh is set to observe the National VAT Day today (10 December), Abdur Rahman said, "VAT Week will be observed from 10 to 15 December."
Reassuring traders, he said, "You will only have to pay the VAT you owe."
Referring to the issue of easing up online VAT payment, he said, "Earlier there was a provision to submit the hard copy at the VAT office after online submission. We have removed that system now."
