Superstores to get a boost

The government plans to withdraw the supplementary duty on equipment import for superstores.
The preservation of perishables at certain temperatures is important in such stores that need different types of equipment such as cabinets, showcases, display counters and refrigerators.
These items are currently subject to 107 percent tax, including a 30 percent supplementary duty.
The proposed budget withdrew this 30 percent supplementary duty for VAT registered super shops.
More than 150 outlets now operate in the country with a total investment of Tk 750 crore, said Md Zakir Hossain, general secretary of Bangladesh Supermarket Owners' Association.
The withdrawal of the supplementary duty will help expand the sector, he said.
It currently requires around Tk 6 crore to set up a superstore, which would come down to Tk 4.5 crore due to the tax exemption, Hossain said.
Supermarkets account for around 2 percent of total sales in the country, compared to around 10 percent in India, industry insiders said.