Prices of several commodities which can be categorised in the necessities are likely to decrease as proposals have been made for reduction in suplimentary duty rates in the budget for fiscal 2014-15.
A range of around 5% to 40% reduction from the existing supplementary duty rates were proposed for these goods, which are mostly food items, in the set.
Fish, fresh or chilled, excluding fish fillets and other fish meat of heading saw 5% reduction in the proposal, from existing 20% to 15%. Potato chips will enjoy a 40% reduction in the duty.
According to the list, the duty reduction is proposed for fish, flours, butter, tomatoes, betelnuts, glucose, sugar confectionery, chocolate, pasta.
Sweet biscuits, waffles and wafers, potato chips, fruit juices, sauces and ice cream will also see reduction in suplimentary duty rates.
The government also proposed duty reduction in perfumes, beauty or make-up, soap, detergents, polishes, fireworks,matches, mosquito coil; aerosol.
All kinds of particle board, silk fabrics, imitation jewellery, cooking appliances and aluminium foil are also included the list.
Four-stroke engine for 3 wheeler/auto rickshaw, video recording or reproducing apparatus and SIM card will also witness drecrease in prices.
To “rationalise” the existing supplementary duties, the government will have to count Tk500 crore as revenue loss in the next fiscal, according to the finance minister.
VAT on other edible oils such as canola, rapeseed and colza seed at the import stage is 15%. An one-third of the applicable tax reduction on it and fixing it at 10% at the import stage was proposed. So, the price of these commodities are likely to decrease.
However, an imposition of VAT at the rate of Tk1 (one) per litre on the local production of these products was also proposed.
With a view to keeping the price of contraceptives within the purchasing capacity of the common people, withdrawal of retail level VAT from those was proposed.
Presently, there is 15% supplementary duty on locally produced filament bulb. considering this item remains beyond the buying capacity of the common people, withdrawal the existing 15% supplementary duty from filament bulb were proposed.
With a view to reduce the expenditure of the kidney patients, an exemption of kidney dialysis solution from the payment of VAT at the local production stage was proposed.
Source: Dhaka Tribune
