River transit fees proposed for India
Different ministries and divisions have proposed transit fees that amount to Tk 347 or $4.4 per tonne under the inland water transit and trade protocol with India.
The proposal was made at an inter-ministerial meeting chaired by Shipping Minister Shajahan Khan in Dhaka yesterday.
At the meeting, the National Board of Revenue proposed Tk 180 in various fees per tonne.
The tax authority initially proposed charging Tk 580 based on the transit-related core committee estimates prepared in 2012.
But the shipping ministry told the NBR that the rate was too high as per the policy of the World Trade Organisation. It asked the tax collector to send a revised proposal.
A shipping ministry official said at yesterday's meeting the NBR was asked to send its proposal regarding the charges to the shipping ministry after taking the finance minister's approval.
Bangladesh Inland Water Transport Authority has proposed Tk 10 per tonne as fees for using the river route. Besides, if its warehouse is used, a separate charge will be levied.
The Directorate of Sea Transpor-tation has proposed charging Tk 156 for survey and navigation.
The Road Transport and Highways Division suggested a fee of Tk 1.024 per tonne per kilometre for using the roads under the Arrangement of River Protocol.
However, the Bridges Division and the environment ministry did not propose any charge yet.
Mashiur Rahman, the prime minister's economic affairs adviser; Shafique Alam Mehdi, shipping secretary; and Nasir Arif Mahmud, head of the technical committee on shipping protocol, were present at the meeting.
The meeting discussed different aspects of the charges, which will be finalised after further discussions, Mahmud told The Daily Star.
The charges will be finalised on the basis of the decision taken at the higher level of the government, he said.
A shipping ministry official said the transit fees will be finalised in the India-Bangladesh Joint Technical Committee.
The meeting also discussed the NBR's proposal of imposing 100 percent bank guarantee for Indian transit cargo.
The shipping ministry opposed the imposition of 100 percent bank guarantee in the inter-ministerial meeting and suggested imposing an alternative guarantee which will not add additional costs to Indian operators.
At present, the BIWTA takes Tk 2 lakh as security money.
Earlier in April, during a shipping secretary level meeting in New Delhi, the Indian side too voiced its opposition against the bank guarantee requirement.
At the meeting yesterday, the BIWTA and private ship owners presented a calculation as to how much Bangladesh will earn when transportation of Indian transit cargo starts.
According to their estimate, if the transit is introduced in the river routes, around 15 lakh tonnes of various goods including food grains, fertiliser and industrial raw materials will be transported a year.
Bangladeshi ships, trucks and trawlers will earn Tk 823.90 crore annually.
On the other hand, the BIWTA will earn Tk 76.25 crore a year on account of various charges including berthing, unloading and use of jetties.
Alongside, additional money would be earned on account of transit fees.
Bangladesh will give India transit on the river route under the amended river protocol signed during Indian Prime Minister Narendra Modi's visit to Bangladesh in June.
Under the agreement, ships of Bangladesh and India will get equal shares for transportation of transit goods.
However, a BIWTA official said Bangladesh can use more than its share of ships for transportation as India lacks vessels.
The operators in both countries will charge realistic uniform freight rates for both inter-country trade and transit traffic, according to the agreement. Such rates will be fixed through mutual consultation.
Under the river protocol, India has prioritised one river route: from the Indian port of Kolkata to Ashuganj. From Ashuganj, the cargoes will cross the Indian border by road.
Bangladeshi trucks may carry cargoes transhipped from river crafts at Sherpur and Ashuganj to the Indian border, according to the agreement.