Staff Reporter :
Exemption of Advance Tax (AT) for the registered refiners on raw sugar has not yet impacted on sugar market as the price of the essential commodity is still high.
The National Board of Revenue (NBR) exempted registered refiners from paying of the AT on January 31 on imported raw sugar to keep the price of the commodity affordable in the market.
Value-Added Tax (VAT) wing of the NBR issued a gazette notification waiving 5 per cent AT on crude sugar import.
NBR officials said at least Tk 2 per Kg was supposed to reduced in the retail markets due to the AT exemption.
NBR took the decision as the refiners were facing difficulties in getting AT refund as there is no VAT at the production stage and cannot obtain refund due to procedural complexities, they added.
But the sugar is still selling at Tk 70 per kg in the city’s kitchen markets on Wednesday, according to the Trading Corporation of Bangladesh (TCB) data.
Importers, however, said the sugar price has increased in the domestic markets as the price increased in the international markets.
The sugar price has increased in the local markets as it has increased around $100 to $420 from $320 per tonne in the international markets, said Biswajit Saha, General Manger of the City Group, one of the biggest sugar refiners of the country.
The price will come down, if it reduces in the global markets, he added.
He further said the withdrawn of the AT has only eased
the way for the importers of receiving their stagnant funds of worth around Tk 500 crore.
Around 75 per cent of the country’s total demand is met by the imported sugar. Different companies imported around 16 lakh tonnes raw and 1 Lakh tonne refine sugar per year.
The NBR made the decision following recommendations from the commerce ministry and sugar refiners amid a price hike of sugar and complexities refiners are facing in receiving refund.
After the AT exemption, specific duty at the rate of Tk 3,000 a tonne, 15 per cent VAT, 30 per cent regulatory duty and 5 per cent advance income tax remain in place for sugar import.
Earlier, the Bangladesh Trade and Tariff Commission had also recommended withdrawing the tax and reducing the sugar import tariff.
Exemption of Advance Tax (AT) for the registered refiners on raw sugar has not yet impacted on sugar market as the price of the essential commodity is still high.
The National Board of Revenue (NBR) exempted registered refiners from paying of the AT on January 31 on imported raw sugar to keep the price of the commodity affordable in the market.
Value-Added Tax (VAT) wing of the NBR issued a gazette notification waiving 5 per cent AT on crude sugar import.
NBR officials said at least Tk 2 per Kg was supposed to reduced in the retail markets due to the AT exemption.
NBR took the decision as the refiners were facing difficulties in getting AT refund as there is no VAT at the production stage and cannot obtain refund due to procedural complexities, they added.
But the sugar is still selling at Tk 70 per kg in the city’s kitchen markets on Wednesday, according to the Trading Corporation of Bangladesh (TCB) data.
Importers, however, said the sugar price has increased in the domestic markets as the price increased in the international markets.
The sugar price has increased in the local markets as it has increased around $100 to $420 from $320 per tonne in the international markets, said Biswajit Saha, General Manger of the City Group, one of the biggest sugar refiners of the country.
The price will come down, if it reduces in the global markets, he added.
He further said the withdrawn of the AT has only eased
the way for the importers of receiving their stagnant funds of worth around Tk 500 crore.
Around 75 per cent of the country’s total demand is met by the imported sugar. Different companies imported around 16 lakh tonnes raw and 1 Lakh tonne refine sugar per year.
The NBR made the decision following recommendations from the commerce ministry and sugar refiners amid a price hike of sugar and complexities refiners are facing in receiving refund.
After the AT exemption, specific duty at the rate of Tk 3,000 a tonne, 15 per cent VAT, 30 per cent regulatory duty and 5 per cent advance income tax remain in place for sugar import.
Earlier, the Bangladesh Trade and Tariff Commission had also recommended withdrawing the tax and reducing the sugar import tariff.
