Trade
5 years ago

NBR exempts fertiliser import from AT

Picture used for illustrative purpose only
Picture used for illustrative purpose only

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The National Board of Revenue (NBR) has exempted import of all types of chemical fertilisers from paying Advance Tax (AT) to facilitate agriculture production.

The importers will enjoy the exemption from paying 5.0 per cent on import of all types of chemical fertilisers, including triple super phosphate (TSP), diammonium phosphate (DAP), muriate of potash (MOP) and powdered MAP, according to a Statutory Regulatory Order (SRO) issued by the VAT wing on September 03, 2019.

In the budget for current Fiscal Year (FY 2018-19), the government had imposed the AT on all types of import products, including fertilisers. But, it created resentments among the non-urea fertiliser importers from private sector.

The Bangladesh Fertilizer Association (BFA), in a letter to the NBR dated July 23 last, threatened to stop importing fertiliser unless it withdraws the tax.

Following imposition of the new import tax, the importers were facing difficulties in releasing fertilisers from the customs ports.

Leaders of the association held several meetings with the finance minister, agriculture minister and NBR chairman on the issue.

The BFA executive secretary Riaz Uddin Ahmed said six ships carrying an estimated 0.22 million tonnes of non-urea fertilisers are now waiting in the Chittagong port due to this tax.

The importers will now be able to release the fertilisers from ports following the exemption, he added.

He said the fertiliser is a subsidised sector of the government and all types of import taxes, except AT, are exempted.

"Cost of import of fertiliser will be increased with the payment of AT at import stage and it would affect the farmers in agriculture sector," he said.

Annual combined demand of fertilisers is more than 5.0 million tonnes. Of which, annual demand of non-urea fertilisers are more than 2.4 million tones, which is completely import dependent.

About urea, the country's production capacity is around 0.8 million tonnes and Bangladesh Chemical Industries Corporation imports the remaining 1.8 million tonnes to meet the domestic demand.

Of non-urea fertilisers, Bangladesh Agricultural Development Corporation imports 60 per cent of the annual demand and private sector importers bring the remaining 40 per cent.

The BFA leader said the private importers get the work order from the government through tenders and facilitate it to procure non-urea fertilisers.

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