Bangladesh Tariff Commission has recommended for withdrawal of 20 per cent supplementary duty on import of cardamom and cumin to keep the market of these two essential spices stable. The tariff body also suggested the commerce ministry for strengthening market monitoring activities so that prices of the products remain affordable to the consumers ahead of and during Eid-ul-Azha.
In a report submitted to the ministry on Sunday, the BTC observed that importers and shopkeepers increased the prices of cardamom and cumin ahead of Eid-ul-Azha, one of the major festivals of Muslim community when the demand of these two spices multiply.
According to the BTC findings, the two items are selling at lower prices in the local markets than that of import prices because of higher duty imposed on the products that leads the importers for smuggling the items from neighboring India.
‘So considering the two issues, the commission recommended for withdrawal of supplementary duty on import of the items,’ a commerce ministry official told New Age on Monday.
The prices of the products will remain under buying capacity of the consumers if SD is withdrawn, he said, explaining the commission’s argument.
Withdrawal of supplementary duty will end smuggling of cardamom and cumin and will increase revenue earnings of the government, he said.
The BTC prepared the report on instruction of the ministry after Bangladesh Grocery Business Association applied to the ministry for withdrawal of SD.
Currently, importers have to pay a total of 61 per cent duty including 25 per cent import duty, 5 per cent regulatory duty, 20 per cent SD and 5 per cent advance income tax on import of the two items.
According to BTC, current demand for the cardamom and cumin is 1,171 tonnes and 5,689 tonnes respectively that are imported, mainly from India, United Arab Emirates and some other countries.
In the local markets, cardamom is being sold Tk 1,600 to Tk 2,000 a kilogram while cumin is being sold Tk 400 to Tk 500.
Commerce ministry officials said that now the ministry would examine the recommendation of the BTC and forward it to the National Board of Revenue for taking the next step.
-With New Age input
