Businesses got a duty exemption of Tk 61,032 crore in FY2022-23 on the ground of reducing prices of products and goods in the domestic market, according to the latest data released by the National Board of Revenue (NBR).
But, the traders actually sold their goods, which have duty exemption, at a higher price in the domestic market and make a hefty profit, said leaders of consumer rights organisations.
The NBR through notification and special Statutory Regulatory Order (SRO) has given such exemption on import duty.
Vice President of the Consumers Association of Bangladesh (CAB) SM Nazer Hossain told UNB that despite getting a duty exemption, the traders did not decrease the price of consumer products in the local market.
He termed it as a failure of the government’s market monitoring system and syndication of business of different essential commodities.
The duty exemption increased by Tk9,152 crore or 17.64 per cent in FY23 compared to FY22. In the year, Tk 51,880 crores of duty were exempted.
Stakeholders feel that the increase in exemptions to control inflation and protect local businesses has not had a major positive impact on the market.
A large portion of duty exemption has been given in the import of capital equipment. Tk9,656 crores have been exempted in this sector. After that, traders got a discount of Tk 5, 584 crore for defence stores.
In FY23, out of the total revenue collection target of Tk3.70 lakh crore, the target of collection as duty at the import-export level was Tk 1.11 lakh crore. And at the end of the financial year, the tax collection was Tk 92,732 crore.
The NBR would have suffered a deficit of Tk18,268 crore if the NBR would have collected more revenue than the target and if the exemption was not granted.
In the FY23, capital equipment import got duty exemption of Tk 9,656 crore, edible oil importers Tk 3,856 crore, raw material importers Tk 1,974 crore, mobile manufacturers Tk 2,241 crore and defence stores Tk 5,584 crore.
Apart from this, the power grid company got an exemption of Tk 827 crore, the Rooppur nuclear power plant project Tk 4,041 crore, special exemptions of Tk 9,050 crore in various sectors, Tk 405 crore in relief products, Tk 5,676 crore have been exempted as duty concessions at various times.
The amount of duty exemption has increased to Tk1,454 crore in Rooppur nuclear power plant construction project. In this sector, the amount of exemption in FY22 was Tk 2,587 crore.
