The National Board of Revenue is going to withdraw duties on import of green chilli in a bid to keep the price of the essential affordable for consumers through increasing
its supply to the local markets, NBR officials said.
The revenue board on Monday sent a proposal to finance minister Abul Maal Abdul Muhith for his approval for reducing import duties on green chilli from 93 per cent to zero till December 31, they said.
The finance minister, however, will take final decision on to what extent and for how many days the duties will be withdrawn, they added.
The price of green chilli jumped to Tk 200 a kilogram in the city’s kitchen markets on the eve of Ramadan from Tk 70-Tk 80 a kg.
The Federation of Bangladesh Chambers of Commerce and Industry on Saturday requested the government to withdraw duties on import of green chilli for the remaining days of Ramadan, the fasting month for Muslims, to keep price of the item stable in the local markets.
The price of the item, however, came down slightly on Monday and it was retailing at Tk 130 to Tk 160 a kg in the city’s kitchen markets.
An NBR official told New Age that damage of green
chilli plants due to excessive rainfall across the country, flood in some districts and hoarding by some unscrupulous traders resulted in the price spiral of the item amid huge demand for the item in Ramadan.
‘So, the NBR made the proposal of withdrawing of import duties on green chilli so that its price comes down to affordable level,’ he said.
Currently, importers have to pay a total of 93 per cent of duties including 25 per cent customs duty, 20 per cent supplementary duty, 5 per cent regulatory duty, 15 per cent value-added tax, 5 per cent advance income tax and 4 per cent advance trade VAT in import of green chilli.
The FBCCI, the apex trade body of the country, hoped that the price of green chilli would come down to Tk 70-Tk 80 a kg if the government withdraws duties imposed on the import of the commodity.
Bangladesh imports green chilli mainly from India.
-With New Age input
