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The National Board of Revenue has exempted registered refiners from paying advance tax on import of raw sugar to keep the price of the commodity affordable on the market.
Value-added tax wing of the revenue board on Sunday issued a gazette notification waiving 5 per cent AT on import of crude sugar.
The NBR make the decision following recommendations made by the commerce ministry and sugar refiners amid a price hike of sugar and complexities refiners are facing in receiving refund.
Prices of sugar have been increasing in recent months following a price hike of raw sugar on the international market.
Sugar sold for Tk 65-70 a kg on Monday on the kitchen market in the capital, Dhaka, according to the Trading Corporation of Bangladesh.
The product was sold for Tk 62-65 a kg a month ago.
The new tax benefit will only be applicable to VAT registered manufacturers.
After the AT exemption, specific duty at the rate of Tk 3,000 a tonne, 15 per cent VAT, 30 per cent regulatory duty and 5 per cent advance income tax remain in place for sugar import.
Officials of the revenue board said that refiners were facing difficulties in getting AT refund as there is no VAT at the production stage.
Refiners also cannot obtain refund due to procedural complexities, they said.
Earlier, the Bangladesh Trade and Tariff Commission had also recommended withdrawing the tax and reducing the sugar import tariff.
