a year ago

Tax hike has little impact on prices of essentials

NBR chief opines

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Tax increase has little impact on rise in prices of essential commodities, as other factors - including market syndication - have major impact on it, said the National Board of Revenue (NBR) chairman.

Sometimes prices of commodities increased exorbitantly despite downward adjustment of taxes.

Responding to queries of newsmen in a press briefing, Abu Hena Md Rahmatul Muneem noted that the NBR has realised the matter following its internal analysis.

The board organised the press briefing on its premises on the occasion of International Customs Day 2023. It will be observed today (Thursday) under the theme - 'nurturing the next generation: promoting a culture of knowledge-sharing and professional pride in customs'.

The NBR will observe the day by organising seminar, view-exchange meeting, and discussion.

Finance Minister A H M Mustafa Kamal is expected to attend the seminar as the chief guest.

The NBR chairman also said the board cannot impose high taxes on import of raw materials, essential commodities, and fuels to save dollar.

Any hurried decision to save foreign currencies - being panicked by the present dollar crisis - may affect the local industries, he added.

The customs revenue collection showed a poor growth in the July-December period of the current fiscal year (FY), 2022-23, compared to that of the corresponding period last year, as the NBR cut duty and taxes on a number of consumer goods.

In the first six months of the current FY, the NBR collected customs revenue worth Tk 449.50 billion, achieving 9.25 per cent growth.

Mr Muneem expressed hope to achieve the customs revenue collection target by the end of this FY.

On tariff rationalisation, he opined that it is not task of the tariff commission to rise or cut taxes, but the entity can recommend it.

The NBR analyses the impact of duty reduction on an item, as one raw material can be used for multiple purposes.

On the draft Customs Act, the NBR chief said it is now waiting for law ministry's vetting.

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