NBR removes tax on wheat imports
The National Panel of Revenue has removed the advance income tax (AIT) on imported wheat after it had been discovered that certain businesses were importing common types of the grain beneath the guise of 'durum wheat' to take pleasure from zero-duty benefits.
Regarding to NBR officials, importers claimed their shipments had been durum wheat in order to avoid the 5 % AIT applicable designed for more common wheat.
These anomalies surfaced following the Customs Intelligence and Investigation Directorate (CIID) found that wheat had been imported beneath the 'wrong' Harmonised System Code, a standardised numerical method for classifying traded products.
In a letter to the NBR in October, the Customs House Chattogram explained the CIID suggested that duty assessments on imported wheat be achieved by specifying the sort of grain through testing at the Bangladesh Wheat and Maize Research Institute (BWMRI).
As such, the customs home sent samples of the imported wheat to state-function BWMRI for testing.
It was then found that the imported cereal was a good basic type, not durum wheat, that there are zero AIT charges, the Customs House Chattogram said in a good statement.
In addition, it sought NBR's directive on whether to release the imported wheat if the tax is paid.
"The NBR previously allowed importers to really have the food grains released predicated on bank guarantees after the detection," said a senior official of the NBR seeking to remain unnamed.
After, amid pleas from businesses, the tax authority decided to withdraw the progress income tax on a variety of wheat. Nevertheless, the NBR didn't waive the AIT for grains imported before.
"There will be no AIT on wheat imported following notification. We have eliminated the tax for the good thing about people," the state said.
Bangladesh highly will depend on imported wheat to meet up its developing demand for flour-based food, including biscuits and noodles.
The united states imported 64.34 lakh tonnes of wheat in fiscal 2019-20, that was 87 % of its total annual consumption of 74 lakh tonnes, based on the food ministry and the US Department of Agriculture.
As of December 10, 22.20 lakh tonnes of wheat was imported year, info from food ministry confirmed.
