Pay taxes before importing products

Prime Minister Sheikh Hasina on Monday ordered all state-purpose importers to pay VAT and taxes properly before bringing any product to the country.

The prime minister came up with the order as the government is being deprived of its due taxes and VAT from incoming shipments for the public sector.

Cabinet Secretary Khandker Anwarul Islam said the prime minister gave the order in the cabinet meeting held at the Prime Minister’s office on Monday.

Anwarul said, “Many of us are not aware of various issues including payment of taxes. Different government divisions and departments do not pay income tax or VAT while bringing in goods. In such cases, goods could not be unloaded.”

Khandker Anwarul said importing agencies sometimes do not unload their products in time which incurs losses for them as the shippers ask for compensation for overstaying their vessels. The compensation sometimes stands between $20,000 and $30,000.

“The prime minister has ordered him to sit with everyone and make it clear that tax and VAT are paid accordingly before bringing in any product,” said Anwarul.

The cabinet secretary said it has been asked to look carefully to ensure payment of CD VAT in all cases and no demurrage should be paid if there is no emergency public procurement.