Experts criticise proposed duty exemption

A section of environmentalists have opposed the exemption of existing 5 per cent supplementary duty on all types of polyethylene bag imports proposed in the budget for FY23, pointing out that Bangladesh banned this particular packaging material back in 2002.

The ban came in line with the Environment Conservation Act 1995. Later, the government in a gazette issued on July 23, 2008 legalised the production and use of polyethylene bags only for packaging fish larvae, mushrooms and other food products.

To this end, at a press conference by the Environment and Social Development Organisation (ESDO) in Dhaka on Thursday, experts urged Finance Minister AHM Mustafa Kamal to clarify the types of polyethylene bags that are getting supplementary duty exemption in FY23.

ESDO Secretary General Shahriar Hossain, “Why and how the finance minister proposed to exempt the existing 5 per cent supplementary duty on all polythene bag imports, when all such material remains banned in the country since 2002? This matter should be clarified.

“Under which HS code these polythene bags will be imported also needs to be clear, the budget speech mentions nothing regarding this issue.”

In his budget speech on June 9, Finance Minister AHM Mustafa Kamal said, “I propose to withdraw the existing 5 per cent supplementary duty on all types of polythene bags, plastic bags (including oven plastic bags) and wrapping materials made of polyethylene.”

ESDO Chairman Syed Marghub Murshed said, “Supplementary duty is usually imposed for discouraging the import of a particular type of product, and the exemption of duty on such a product incentivises its imports.

“Plastics are harmful for the environment. It is solely responsible for the prolonged flood in the country and waterlogging in the cities. Besides, the government has published a gazette to phase out single use plastic in the coastal districts by 2023.”

Murshed, also a former secretary of the Bangladesh government, added, “At this moment, the exemption of supplementary duty on polyethylene shopping bags and plastic bags contradict the law of the land and the government gazette aiming to eliminate single use plastics.

ESDO’s Executive Director Siddika Sultana, “India has imposed a ban on single use plastics which will be effective from July 1, 2022. Bangladesh would become a dumping ground for India’s single use polythene and plastic bags due to the opportunity proposed in the budget speech.”