Advanced tax on sugar import lifted
FE REPORT | Tuesday, 2 February 2021
The National Board of Revenue has waived advance tax (AT) on the import of raw sugar to help stabilise the prices of the essential commodity ahead of Ramadan.
From now on, the registered refiners will enjoy the exemptions.
The Value Added Tax wing of the NBR issued a gazette notice on Sunday making it effective.
There was 5.0 per such taxation at the import stage of crude sugar, which the importers are supposed to get refund from the VAT offices as per the VAT law.
The decision came following the recommendations of the ministry of commerce and also by the sugar refiners.
Sugar refiners have been facing complexities over obtaining refund of the tax they paid after the import of the essential commodity.
This is why the price of sugar in the local market has been rising in recent months.
The prices of raw sugar in the international market have also surged of late.
Prices of sugar rose to Tk 65-Tk 70 per kilogramme on Monday, up from Tk 62-65 a month ago in the city's kitchen market, according to the state-run Trading Corporation of Bangladesh (TCB).
The NBR data showed tax incidence on the import of sugar is higher than other essential commodities.
From now on, sugar importers have to pay fixed duty at Tk 3,000 a tonne, 15 per cent VAT, 30 per cent regulatory duty and 5.0 per cent advance income tax while importing the item.
However, there is no VAT at the production stage of crude sugar.
Biswajit Shaha, general manager of City Group, said some Tk 1.50 billion advance tax remained stuck with the NBR due to procedural complexities over refund.
The NBR waived the tax to resolve the issue as the refiners could not claim it as costing of production.
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