Because of the ongoing lean season for local fruits, which typically lasts for a few months, the prices of fruits that need to be rushed soared to record highs to unbelievable levels. Especially with Ramadan approaching, this high level in prices is placing a heavy financial burden on consumers when fruit costs tend to rise.
Market observers describe it as nowadays they need to pay a good amount in duties and taxes, which is the main reason for leading to extensive concerns among customers and traders alike. The Bangladesh Trade and Tariff Commission (BTTC) has advised reducing import duties on fresh fruits, such as apples, oranges, grapes, pears, and pineapples. They sent a letter to the National Board of Revenue (NBR) on 17 February, pressing for a reduction in the tax load to alleviate the financial strain on consumers. From last year till this year, the price increased by 60-80 percent. Dhaka’s fruit outlets: apples are now selling at Tk 280-400 a kg, oranges Tk 280-350 a kg, grapes Tk 450-850 a kg, and pomegranates Tk 450-550 a kg. Based on the report of the Bangladesh Fresh Fruits Importers Association, in comparison last month to this month, the prices of importers and wholesalers increased 20-25 percent. This price hike is ascribed to the government’s recent discussion to increase the supplementary duty (SD), which is the main reason for the high price of fresh fruits and the percentage raise of 20-30 percent in fresh fruit imports.
Already 10 percent advance income tax (AIT) and 20 percent regulatory duty (RD) on fruit imports. The tariff commission has recommended reducing the supplementary duty to the past 20 percent, reducing the AIT from 10 percent to 2 percent, and clarifying the 20 percent regulatory duty. These highlighted the recent tax structure, which is combined with the appreciation of the US dollar, and that has made imported fruits expensive for most customers. The commission said in January mandarin imports dropped by 51 percent, followed by pears at 45 percent, pomegranates at 32 percent, grapes at 21 percent, and apples at 3.5 percent. In the recent situation, importers pay Tk 120 in taxes for every Tk 86 for imported fruits. The commission also suggests they decrease the tax (as 5 percent VAT). The CAB officer also said that after inspecting the tariffs, to ensure fair pricing, the government needs to increase surveillance from the import stage to the retail stage.
Source: The Financial Express
