The government may prolong the tax benefit for import of rice by three months until March next year, in an attempt to contain price hike of the staple, particularly before next harvest.
Officials said that the contingency plan was under consideration as global prices of the staple grain surged, making it difficult for importers to meet their import target by this month-end.
The pared-down tax on import of rice is scheduled to expire by the end of this month, with imports far below the mark and government procurement internally also falling short.
The National Board of Revenue (NBR) has received requests from relevant ministries to prolong the tax bait further to cool off the volatile food market.
This year, the government cut import taxes on rice in two phases, from a prohibitive 62.5% down to 15.25%.
In the first phase, the tax benefit was given until October 31, 2022, and later extended until December 31.
Official sources say a move is on to extend the tax benefit further to facilitate import of rice and ensure uninterrupted supply of rice to the consumers-incidentally, in the wake of a global prognosis.
A recent monthly report of the Food and Agriculture Organization (FAO) said the current rice prices are 14.7% higher than those a year ago.
Currently, import of rice requires 5% regulatory duty, 5% advance tax and 5% advance income tax.
As per NBR order, importers must obtain permission from the food ministry to import rice by paying the cut-down duty.
Rice prices jumped by up to Tk12 a kg on the local market during the peak harvesting season of Aman, according to the Trading Corporation of Bangladesh (TCB) and local market prices, amid high prices of most consumer goods.