The National Board of Revenue (NBR) has finally hiked the tariff value and imposed Value Added Tax (VAT) on the import of both raw and refined sugar for the sake of protecting the state-run sugar mills.
The import tariff value has been hiked to US$350 per tonne in case of crude sugar while it is $430 per tonne for refined sugar against the existing $320 and $400 respectively per tonne.
To this effect, the customs wing of the Internal Resources Division (IRD) on Tuesday issued a Statutory Regulatory Order (SRO). In addition, a 15% VAT was also imposed on the tariff value of the product during imports.
The NBR made the move after Bangladesh Sugar and Food Industries Corporation (BSFIC) under the Industry Ministry requested the government to hike the duty on imported sugar as it was facing financial crisis due to its failure in selling of the stockpiled sugar in the backdrop of sugar price fall in in international market.
Consumers now have to feel the burden of the increased tariff and VAT for consuming sugar, an essential daily commodity, as the local businesses recently hiked sugar prices after the news was spread on imposition of VAT on sugar.
According to Trading Corporation of Bangladesh data, price of sugar has increased in the local market by 11.11% comparing to same period of last month. Sugar was sold at Tk44 to Tk46 at local market yesterday while it was Tk39 to Tk42 three weeks back.