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Country’s sugar refiners have sought waiver of existing 20 per cent regulatory duty (RD) on raw sugar import, aiming to keep the sweetener prices stable during the upcoming Ramadan.
They also have requested the government to make the facility available until the end of the current fiscal year that will end on June 30 next.
Bangladesh Sugar Refiners Association (BSRA) through a letter has recently requested the commerce ministry to take necessary steps in this regard.
Currently, private-sector producers have to pay 20 per cent RD on imports of raw sugar.
According to the BSRA letter, the demand for sugar will increase in the country in the upcoming holy month of Ramadan.
The Association fears that it will be a challenge to keep the sugar prices within the purchasing capacity of consumers.
If the production cost of imported raw sugar increases, it may create volatility in the market during the Ramadan, said the letter.
“We have received a letter from the sugar refiners’ association recently. We have already discussed with the authorities concerned on the issue,” said a high official of the commerce ministry.
The tax incidence on imports of sugar is higher than that of other essential commodities, a source said.
Currently, some 15 per cent VAT is applicable to import of raw sugar while the import duty (customs duty) is Tk 3,000 per tonne.
However, 20 per cent regulatory duty is also applicable to the import of sugar. In addition, the government imposes 2.0 per cent advance income tax (AIT).
But there is no VAT at the production stage of crude sugar.
There are five private sugar refineries in the country. They have been selling necessary sugar by refining raw sugar imported from the global market.
Currently, the daily production capacity of private refineries is 10,200 tonnes.
The country’s annual demand for sugar is now about 2.0 to 2.2 million tonnes.
To keep the domestic market stable, the refiners have been importing raw sugar, according to the Association.
Presently, sugar is selling at Tk 75-78 per kg in the retail market, according to the data of Trading Corporation of Bangladesh (TCB).
(FE)
