The National Board of Revenue has reduced supplementary duty by 10 per cent on import of all kinds of fresh fruit including mango, apple, orange, grapes and some dried fruits to keep their prices within the affordable level of the common people on the local market.
The revenue board on Tuesday issued a salutatory regulatory order reducing SD on import of fruits to 20 per cent from the existing 30 per cent. Other duties and taxes will remain unchanged.
According to the SRO, importers will have to pay 20 per cent supplementary duty on import of fresh or dried mango, fresh or dried orange and similar fruits, fresh or dried grapes, melon, watermelon, papaw, apple, cherries, apricots and other fresh fruits along with other duties and taxes.
Currently, there are around 108.16 per cent duties on imports of fruits including 30 per cent SD, 25 per cent customs duty, 15 per cent value-added tax, 5 per cent regulatory duty, 4 per cent advance trade VAT, 5 per cent advance income tax.
After reduction of the SD, the total duties and taxes on import of fruits will be around 98 per cent.
Earlier in March 2012 and in the budget for the 2012-2013 fiscal year the NBR increased duties on import of fresh fruits along with some other products considering those as luxury items to reduce pressure on balance of payment in the wake of depreciation of the taka against the dollar.
But the fruit importers repeatedly demanded reduction of import tax on fresh fruits as their prices soared on the local market after the increase of duties and other taxes.
NBR officials said the revenue board reduced import tax on fresh and dried fruits following instruction of the finance minister.
The NBR increased import duties and taxes on fresh fruits several times that contributed to soaring fruit prices ultimately causing sufferings to middle- and low-income people.
They said fruits were no more luxury items as they were widely consumed by all sections of people.
Jahirul Islam Tipu, convener of the Bangladesh Fruits and Vegetable Importers Association, told New Age that fruit imports had dropped by 50 per cent following the higher cost of import.
He said the incumbent government had increased the duties and taxes on fruit import to 108.16 per cent from 65 per cent in several phases.
Tipu Mia, a fruit trader of Dhaka and owner of Ma Fatema Enterprise, said the fruit importers forced to switch their business to other sector due to duty hike, depreciation of the taka against the dollar and price hike of fresh fruits on the international market.
Chittagong-based fruit importer, Enayet Kabir, owner of Agro-Bangla Corporation, said that they mostly imported fresh fruits and the quantity of dried fruit import was very low.
Bangladesh imports fruits mostly from China, South Africa, New Zealand, Brazil, USA, India, Pakistan, Australia and Egypt.
-With New Age input
