| Date: |
27-04-2015 |
| Subject: |
Meet soon to decide levying duty on rice import |
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The revenue authority sits with the ministries of food and agriculture and relevant departments to decide on imposition of duty on rice import temporarily.
An inter-ministerial meeting will be held shortly to discuss the issue of checking rampant import of rice, officials said.
The customs wing of the National Board of Revenue (NBR) is considering the matter following a recent proposal of the Ministry of Food to slap import duty for ensuring fair price to the rice farmers.
Excessive import of rice, especially from India, made the authorities concerned over fall in prices of rice on the domestic market.
Officials said the customs wing would seek permission of Finance Minister AMA Muhith to hold a meeting with the authorities concerned before imposition of import duty.
According to the existing customs law, the NBR cannot revise the customs duty (CD) upward in the middle of financial year sans Finance Bill.
As per law, Regulatory Duty (RD) could be levied on rice imports for the harvesting and procurement period.
Currently, import of coarse and medium-quality rice is enjoying duty-free facility.
Before imposition of duty, the authorities concerned will assess the impact of duty on the price of rice on the local market.
Officials said the issue might be settled before May 01 as Boro-procurement drive of the government will start on that date. The government will procure some 1.1 million tonnes of Boro rice in the current harvesting season.
Since 1 July 2014 until 22 April 2015, rice imports piled up at 1.2 million tones--the highest quantity in last four years since FY2011. The import of rice from India marked a substantial increase in the current fiscal year.
Last FY a total of 371,000 tonnes of rice was imported in the private sector. Rice imports jumped around four times in the current FY compared to that of the same period in the previous year.
Price of paddy usually falls following a market glut after new harvest. So, the government purchases rice to rein in price fall and ensure fair prices to growers.
Policy Research Institute (PRI) Chairman Dr Zaidi Sattar said the government will have to both ensure fair price for farmers and give relief to the low-income people.
"Rice could be supplied under special programme at subsidized price to the low-income people as imposition of import duty may increase the price on the domestic market," he said.
Consumers Association of Bangladesh (CAB) general secretary Humayun Kabir appreciated the move to check import of rice by imposing duty.
"We are currently self-sufficient in food production. No import is required for meeting the domestic consumption needs," he said.
He, however, suggested the government to monitor whether consumers are bearing the brunt of price burden due to market manipulation by syndicate and hoarding.
Source : thefinancialexpress-bd.com
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