There will be no supplementary duty and regulatory duty on import of products, except 147 items, from July 1, 2015, said National Board of Revenue chairman Ghulam Hussain on Sunday. He advised the entrepreneurs of domestic industries to be prepared for a new duty structure in which local industries would get no protection from imported goods. ‘There will be no supplementary duty and regulatory duty on import of products, except products under 147 HS (harmonised system) codes, from July 1, 2015. The withdrawal of SD and RD all on a sudden will be a big blow for the local industries if industry insiders do not get ready for the phase-out of the duties,’ he said.
He was speaking at a pre-budget discussion with the representatives from ceramics sector.
Supplementary duty and regulatory duty, which are now effective on import of around 6,000 products, will be zero from July 2015 after implementation of the new Value-Added Tax and Supplementary Duty Act-2012, he said.
From July 2015, SD and RD will be imposed on only those products harmful to environment and health and the list of products has been included in the new VAT and SD act.
According to the list, SD and RD will only be imposed on products related to alcohol, soft drinks, tobacco, air conditioner, motor vehicles, mobile SIM and some other products and services.
Representatives of the Bangladesh Ceramic Wares Manufacturers Association, however, requested the NBR to withdraw these two types of duties on import of finished goods in several phases. Otherwise, they said, it would put the domestic industries in a big trouble.
Domestic industries will not be able to cope with the situation if the duties are withdrawn all on a sudden, they said.
Ghulam said the government would have to remove these duties as there were many things including conditions from the World Bank, International Monetary Fund and other international organisations to disburse loans and budget assistance involved with the issues.
The government usually imposes SD and RD to give protection to local industries from imported finished products and discourage import of luxury items, NBR officials said.
They said the government was committed to international organisations including the World Trade Organisation and other lending agencies to facilitate international trade as under the commitment it would have to minimise discrimination in duty structure between imported goods and local industry.
NBR member Jahangir Hossain said Bangladesh had already provided discriminatory treatment in terms of giving protection to the local industries.
‘Effective rate of protection to local industries in Bangladesh is around 140 per cent to 150 per cent while standard rate of protection is around 40 per cent to 50 per cent,’ he said.
According to internationally agreed system, discrimination between imported goods and locally produced goods is not allowed, Jahangir said.
So, businesses will have to find out the ways and means to absorb the shock derived from the withdrawal of the duties, he said.
At the meeting, the BCWMA demanded reduction of duties in import of raw materials used in the sector to help it to be competitive on the international market.
It also demanded withdrawal of SD on tiles at production stage and increase of duties on import of finished products.
BCWMA president Sirajul Islam Mullah and secretary general Rizvi Ul Kabir, among others, spoke at the meeting.
-With New Age input
