Govt turns down plea to cut taxes on oil import

The government yesterday turned down a plea for further cuts in taxes on import of edible oil due to complexities in legal procedure and lack of commitment from the importers to reducing the price at consumer level.
Finance Adviser Mirza Azizul Islam rejected the request from the leaders of Bangladesh Edible Oil Association who met him at the Finance Ministry conference room. Commerce Secretary Firoz Ahmed and NBR Chairman Badiur Rahman were also 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, if there had been any commitment from the importers that the prices would come down, he said.
The finance adviser also referred to the previous experience when the government permitted import of edible oil at the rate of zero percent customs duty, but the price did not come down.
The importers sought a further cut in 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 cuts to release the imported oil at reduced cost.
Replying to a question, he said the importers are selling soybean oil at Tk 73 to 74 per litre at the mill gates, but they do not have control over around 200,000 retailers across the country.
He also said there would be no shortage of supply of edible oil during Ramadan, but problems could arise after Ramadan unless the tax is reduced.