The National Board of Revenue (NBR) has released a circular aiming to lower the cost of this necessary commodity and stabilize the market by halving the customs charge on imports of sugar.
The NBR Chairman’s signature on the circular said that the import duty for colorless, unrefined sugar with a high test has been set at Taka 1,500 per ton. Taka 3,000 per ton is the set duty on other sugar.
The new duty rate would take effect right away and last until March 31, 2024.
Previously, the customs charge on unrefined sugar was Taka 3,000 per ton, while other sugar incurred a duty of Taka 6,000 per ton.
Currently, the sugar importers have to pay 15 percent VAT, 30 percent regulatory duty, two percent advance income tax apart from Taka 3,000 tax for per ton sugar. That duty has been reduced to Taka 1,500 per ton.
If calculated, more than 60 percent tax is being imposed on import of sugar up to the reach of the consumer level which is around Taka 40 to Taka 42.
In the kitchen market, sugar is currently offered for between Taka 135 and 140 per kilogram. The government has reduced tariff in the current year as one of the measures it has taken to control the price of sugar. However, the price of sugar has not yet reached the intended level.
Currently, the amount of sugar produced locally only makes up one percent of the total need, which is roughly 30,000 tonnes per year, while between 22 and 24 lakh tons of sugar are imported annually.
In most cases, the nation imports unrefined sugar. Usually, after importing raw materials or unrefined sugar, the sugar refiners manufacture sugar.
