Importers claimed high duty for spice and glass products unlike in any other neighbouring countries has been resulting in peril of the customers and alluring smugglers to make the best out of such supposedly irrational tariff structure.
They made the call at a pre-budget meeting with National Board of Revenue yesterday.
The NBR chair Md Ghulam Hussain presided over the meeting and said the revenue authority will assess the current tariff structure to rationalise.
Spice Importers
The spice importers said three-fourth of hot spices in the local market come through smuggling and therefore urged the government to relax duty on the products.
“Hot spices and dry fruits completely depend on import. But high duty has encouraged large scale of smuggling,” said M Enayet Ullah, president of Bangladesh Wholesale Hot Spice Businesses Association.
“Due to high duty, the smugglers are leaned towards bringing spices into the country from India and bag the duty amount as their profits.”
He added: “Now the import duty on raisin is 92.30%, dry fruits 35% and hot spices 61%. The structure is also making the products out of the people’s purchasing capacity.”
The association leaders urged the NBR to waive supplementary duty and Vat on import of the products and cut customs duty to 15% from 25% now.
Attending the meeting, the association leaders said the importers have to pay Tk300 to Tk400 in duties for importing a kilogram of hot spices, which is “illogical and unlike any other neighbouring countries.”
The NBR chair heard the requests made by the small, medium and other businesses as part of its budget preparation work.
He sought support from businesses to manage the revenue collection in the next fiscal as a collection target has been set at Tk1,49,000 crore.
Glass Importers
At the discussion, representatives from Bangladesh Glass Merchant Association have also raised the same demand to rationalise the industry’s currently set duty of 133%. Moreover, they urged to set the supplementary duty at 10% from the current range of 20% to 45% on different type of imports.
“Currently, there are 133% duties on import of sheet and float glasses whereas only 5% VAT has been imposed at the local manufacturers. For the very reason importers are continuously facing losses from such price competitiveness,” said association general secretary M Abu Saleh.
Demanding reduction of duties, he said there are no such high duties in the world. He mentioned that the duties are not more than 50% in the neighbouring countries like India, Pakistan and Sri Lanka.
“Therefore, the duties need to go through reduction for the greater good - for protecting businesses.”