Medical goods piled up at ports for months

Medical equipment donated by friendly countries and donors has been lying at Chittagong Port and Hazrat Shahjalal International Airport in Dhaka for months due to Value Added Tax (VAT) related issues, according to the health ministry.

Every year, different foreign countries and development organisations, including World Health Service (WHO), United Nations International Children’s Emergency Fund (UNICEF), Global Fund, Japan International Cooperation Agency (JICA), and Korea International Cooperation Agency (KOICA), provide numerous medical instruments to the government as gift or aid for the improvement of the health sector.      

The medical goods were given to Bangladesh to increase treatment facilities in the country’s government hospitals. But the machinery are yet to be released from the ports due to VAT complications.

The medical machinery includes portable X-ray machines, monitors for monitoring the health condition of patients, computerised tomography (CT) scanners, electrocardiography or ECG machine, blood gas analysers, oxygen generators, ambulance, and mobile clinics etc., said the health ministry sources.

Apart from those, 5.861 lakh pesticide-added mosquito nets for Malaria prevention, 2,54,99,200 syringes for Covid-19 inoculation, 2.55 lakh pieces of safety boxes, 2,00,04,000 mebendazole tablets are yet to be released from the ports.

Insiders said, due to the delay in release, adverse reactions are being created among the donors which will create uncertainty in receiving such assistance in the future. Moreover, many donated goods are already expiring due to the delay in release.

The Central Medicine Service Department (CMSD) is supposed to take delivery of the medical instruments. CMSD officials said that they do not have the money needed for the release of the donated medical equipment.

They have written to the departments concerned for duty exemption or money allocation. However, no decision has been made so far.

Several letters have been sent to relevant government departments including the Finance Division during the last few months. Meanwhile, the charges at  the airports are increasing day by day.

Japanese ambassador to Bangladesh Ito Naoki also sent a letter to the health ministry in July last requesting the quick release of the medical goods.

According to the regulation of the National Board of Revenue (NBR), except for a few goods, VAT payment is mandatory for the release of all kinds of products including donations or gifts. The government has to issue a separate notification to exempt VAT on donated goods.

On the other hand, only the Minister of State for Shipping has the power to waive taxes at the sea port. The state minister can waive the whole or half of the charges if he wants.

Around 313 medical products worth Tk 77 crore donated by the Japanese government remained stuck at the Chittagong Port for the last six months, according to sources.

CMSD officials said they need around Tk 22 crore to release the medical equipment donated by Japan. They do not have the money.

Japan signed an agreement with Bangladesh’s Directorate General of Health Services in 2020 to donate medical equipment. Under the agreement, several shipments of medical equipment arrived at the Chittagong Port in June last. These medical equipment are supposed to be supplied to various hospitals outside Dhaka and Dhaka.

Sources said the CMSD sent a letter to the DGHS on July 28, seeking financial support, to be paid as customs duty, for releasing the Japanese medical goods. 

Later on November 24, the health ministry sent letters to the cabinet secretary, chief secretary to the prime minister, secretary to the finance ministry, NBR chairman, and secretary to the shipping ministry.

Requesting that the Japanese medical equipment be released considering national interest, the letter sought exemption of VAT or delayed payment of customs and port charges.

Health Ministry Additional Secretary Nilufar Naznin said they have asked the port authorities to take initiative to release the goods for the time being and the VAT will be paid later after getting the budget.

“NBR and the Chittagong Port Authority are looking over the matter which is a gradual process. We are trying our best to resolve the matter,” she added.