The New Nation - Internet Edition

UNB, Dhaka

The government Thursday turned down a plea for further cut in taxes on import of edible oil for complexities in legal procedures and lack of commitment by the importers to reduce the price at consumer level.

Finance Adviser Dr Mirza Azizul Islam rejected the request by Bangladesh Edible Oil Association when they met with the Adviser at the Finance Ministry conference room. Commerce secretary Firoz Ahmed and NBR chairman Badiur Rahman were present

"The meeting ended inconclusively," the Adviser told reporters after the meeting, adding that it would require amendment to the existing law, which is time consuming.

Even then the government would have considered a further cut in taxes had there been any commitment that the prices would come down, he said. Dr Aziz referred to the previous experience when the government made import of edible oil at zero percent customs duty, but the price did not come down.

The importers sought a further cut from only a total of 18.75 percent VAT and advance income tax, presently applicable at import stage, on some 150,000 tons of edible oil already imported and kept under bond. "There are enough stocks for the month of Ramadan," association president A Rouf Chowdhury told reporters after the meeting, explaining the need for the tax-cut to release the imported oil at reduced cost

Replying to a question, he said the importers are selling soybean oil at Tk 73-74 per litre at the mill gates, but they do not have control over around 200,000 retailers across the country.

Replying to another question, he said there would be no supply shortage of edible oil during the month of Ramadan, but problem could arise after the month unless the tax is reduced.