Govt suspends transit fees

The government has suspended transit and transshipment fees for Indian cargoes and transports on river routes until a further decision, in the face of an Indian demand for withdrawing such fees.
The National Board of Revenue (NBR) yesterday also made it clear that the government did not waive the fees, but suspended until the dispute over the transit fees is resolved.
"Transit fees have been suspended and the customs authorities have been directed to release the two Indian cargo vessels now detained by Bangladesh customs after receiving undertakings from those," NBR Chairman Nasiruddin Ahmed said at a press conference in Dhaka yesterday.
Bangladesh's customs men early this month seized two Tripura-bound Indian vessels at Sheikhbaria in Khulna, as they did not pay transit fees.
The tax administrator had been collecting transit fees on Indian cargoes shipped from Kolkata to Tripura using Bangladesh waterways since July this year.
The NBR earlier imposed transit fees for per TEU container at Tk 10,000, while for bulk product without container Tk 1,000 per tonne, effective from July 1.
Under the Protocol on Inland Water Transit and Trade signed in 1972, Indian cargoes are allowed to transport from Kolkata to Tripura through Bangladesh waterways, but this was the first time they were asked to pay.
Bangladesh Inland Water Transport Authority (BIWTA), after getting clearance from the NBR, allows the vessels to move through Bangladesh.
NBR officials said the Indian side is now trying to influence the government to fully waive the fees.
Ahmed also ruled out the propaganda that the transit fees have been waived. The NBR issued a circular in this regard at the time the last national budget was presented in parliament in June.
The NBR chairman said the circular got a go-ahead from the parliament and the law is still in force.
Asked whether the decision to suspend the fees will go against the law, Ahmed said: "If the government decides to continue the fees, the Indian vessels will make deferred payment for the time the fees will remain suspended."
The officials said the NBR has sent a proposal to the finance ministry favouring the provision of fees.
Besides the demand from the Indian side, an influential quarter in the government is also lobbying against the fees, they said.
If the fees are waived now, India will demand similar waiver for rail and road communications later, the officials added.
The NBR has conducted a study on the issue of the transit fees, and the findings of the study will be presented at a high-profile seminar next month, the NBR chairman said.
The outcomes of the seminar may help the government decide on the issue, said the NBR boss.
NBR member Fariduddin Ahmed said: "Bangladesh needs to calculate the economics of transit. How Bangladesh will benefit from giving transit to India has to be reviewed."