Monday, April 29, 2024
Soaring commodity prices have prompted the Government of Bangladesh to consider a new approach called “seasonal tax.” This temporary measure aims to curb inflation without harming farmers, who often face challenges during specific times of the year.
The government is considering periodical taxation or seasonal tariffs as commodity prices have gone out of control recently.
Finance Minister Abul Hassan Mahmood Ali chaired a meeting on Sunday at the Ministry of Finance with the secretaries of the ministries that will receive the maximum allocation in the budget of the financial year 2024-25 regarding the issue of rising commodity prices, sources present at the meeting confirmed.
Key government officials, including Finance Secretary Md Khairuzzaman Mozumder, Commerce Secretary Tapan Kanti Ghosh, and Agriculture Secretary Wahida Akter, attended the meeting. Secretaries from the Communication, Education, Local Government, Power Energy and Mineral Resources, and Food ministries were also present.
According to the sources, during the meeting, Tapan Kanti Ghosh said that the prices of commodities are going out of control due to increased inflation. Now, the main challenge of the government is to control the prices. For this reason, the price of goods should be brought under control, even if it requires reducing the taxes on those products. Otherwise, the situation cannot be brought under control.
Wahida Akter stated, “Farmers are not getting a fair price. If agriculture is to be saved, the farmers must be paid a fair price. It is no problem if the price of the product increases while paying a fair price to the farmer.
The finance ministry officials concerned said that the government is considering imposing a seasonal duty to solve the problems in the markets. The officials think introducing this seasonal taxation system will solve many issues.
Wishing anonymity, an official of the Finance Division told The Business Post, "Seasonal taxes are imposed when there is a need to impose as it is flexible. These taxes are relaxed when needed to bring prices down.”
“The statements of the two secretaries seem to be opposite, but the underlying purpose is the same. However, whatever the discussion may be, the government has not yet decided on the matter. As the matter has been discussed in detail, a final decision will be taken after all parties sit together,” he said.
As an example, he added, “What do we do regarding the price of rice? When there is mass production, the duty is increased so that the price does not fall too much, and when there is less production, the taxes are reduced so that they do not affect the market as much. As inflation is a factor, farmers will suffer if prices fall too much.”
“Again, when production falls, seasonal duties are reduced so that prices do not go beyond the purchasing power of the consumers. In which case, the farmers' point is not considered,” he added.
