Govt set to hike sugar duty again [ Tritiyo Matra News ]

Govt set to hike sugar duty again

Local December 07, 2015

The government is set to increase again the import duty on both raw and refined sugar through imposing 15 per cent value-added tax and raising the tariff value of the product for protecting the state-run sugar mills.
In august this year, the revenue board had increased duty on sugar import on the same ground.
Finance minister Abul Maal Abdul Muhith has already approved a proposal of the National Board of Revenue for increasing import tariff value to US$ 350 per tonne of crude sugar and to US$ 430 per tonne of refined sugar from the existing US$ 320 a tonne and US$ 400 a tonne respectively along with imposition of 15 per cent VAT on tariff value at import stage.
Finance ministry officials said that the consumer might have to pay an additional Tk 7 for a kilogram of refined sugar because of the increase in the duty structure.
They said that the price of sugar might reach at Tk 46 to Tk 47 a kilogram.
But traders said that the refiners had already increased the price of sugar and the item is being sold at Tk 45 to Tk 46 a kg in the capital’s kitchen markets.
The consumers will now have to bear the brunt of additional sugar price for protecting the interest of the state-run sugar mills.
Finance ministry officials, however, claimed that the price of sugar at consumer level would remain at a tolerable even after increasing the duty.
The NBR on August 26 increased import duty on raw and refined sugar by Tk 5,000 and Tk 6,000 a tonne respectively on the same ground.
At that time, sugar price at the city’s kitchen markets increased by Tk 5 to Tk 6 due to duty hike.
Officials said that the revenue board made the proposal for increasing import tariff value of sugar and imposition of VAT following an instruction of the cabinet in line with an application of the Bangladesh Sugar and Food Industries Corporation for increasing import duty on sugar.
Industries ministry has also recommended for the duty hike for rescuing the state-run sugar mills burdened with unsold stockpiles.
The BSFIC fell in deep trouble after additional sugar produced in the current crushing season in October became stockpiled, the ministry said.
BSFIC, in its proposal, said that the corporation was facing financial crisis for not being able to sell the stockpiled sugar and drop in price of the product in international market. Until, September last, it had 1,37,129 tonnes unsold sugar while private refiners were importing raw sugar in excess quantity, it said.
The sugar mills were facing trouble in continuing production and paying prices of sugarcane to farmers due to fund crisis.
In the context, the BSFIC requested the government for increasing duty on sugar import.
Officials said that the customs wing of the NBR was now taking preparation for issuing a statutory regulatory order in this connection.
The SRO will be issued soon, an NBR official told New Age on Sunday.