The Bangladesh government proposes to waive all
duties on import of edible oils, chickpeas and milk
food in the coming budget for 2007-08 fiscal to stabilise
supply and prices of essential food items.
decision was taken after a majority of advisors at the
meeting of the advisory council favoured drastic cuts
in duty on a number of essential items in line with
the pre-budget demands placed by Bangladesh''s apex trade
body, the New Age reported quoting sources.
import of these items are subject to customs duty, supplementary
duty, infrastructure development surcharge, value added
tax and advance income tax, which add to the soaring
prices of food items.
Withdrawal of import duties on major food items would
cost the exchequer Taka 700 crore in lost revenue but
the government has asked the national board of revenue
to find ways to offset the losses, the report quoting
finance ministry sources said.
28.90 per cent duties are applicable to retail level
import of chickpeas and 13 per cent for bulk import.
Crude palm and soya bean oils are subject to a total
duty incidence of 21.90 per cent. Importers have to
pay 50.75 per cent for bulk import of milk powder and
79.50 per cent for retail imports, officials said.
oil prices in Bangladesh surged 60 per cent in a year
and 16 per cent in last four months, while milk food
prices soared by about
25 and 13 per cent respectively. The government expects
price of chickpeas to climb, as its consumption will
surge manifold during the Muslim fasting month of Ramzan
that falls in September-October.