The revenue authority is likely to slash import tariffs on rice for nearly three months to October 30 to facilitate private purchases from international sources and contain prices of the staple food in the domestic market.
Total import duty may be reduced to around 25 per cent from the existing 62.5 per cent, in line with a recommendation of the food ministry last month.
The ministry has urged the National Board of Revenue (NBR) to slash the import tariff to allow private businesses to buy 10 lakh tonnes of grain from abroad and increase supply to the local market. The aim is to stabilise the prices as they are well above the international rates.
In July, the average price of the coarse grain of Boro harvest was Tk 44 per kilogram (kg), which would be 38 per cent higher than the price of the grain imported from India.
The price edged up 4 per cent in July from Tk 42 a kg in June, data from the Department of Agricultural Marketing showed.
Market operators blamed the slow release of the staple from the saleable holdings by farmers and increased stocking by seasonal businessmen, traders and millers for the steady hike in prices.
Prices of coarse rice were up 4 per cent at Tk 46-Tk 50 a kg in the markets in Dhaka yesterday, as against Tk 44-Tk 48 a month ago, according to the state-run Trading Corporation of Bangladesh. Under the circumstances, the food ministry decided to grant permissions to the private sector to import in July earlier.
The rising prices raised questions as government agencies earlier claimed a higher yield in the last fiscal year. Food-grain stocks at public warehouses also increased. Bangladesh produced 6 per cent more rice year-on-year at 3.86 crore tonnes in 2020-21, estimates by the Bangladesh Bureau of Statistics and the Department of Agricultural Extension showed.
Officials of the NBR said the revenue authority planned to bring down the regulatory duty and cut customs duty to 15 per cent from 25 per cent currently. In addition, a 5 per cent advance income tax and advance tax will be applied.
The NBR is expected to attach the condition that importers will get the tax benefit upon recommendation from the food ministry.
A notification is likely to be issued soon, an official said.
Source : The Daily Star
