2024-04-17 03:41:01
The period of VAT exemption on edible oil on the occasion of Ramadan ended on April 15. Now the mill owners want to sell oil at the previous price. As a result, the price of edible oil is expected to increase. However, there is no opportunity to go back to the previous price by increasing the price of oil, said Commerce State Minister Ahsanul Islam Titu.
He said this during Meet the Reporters program at Nasrul Hamid Auditorium of Dhaka Reporters Unity (DRU) on Tuesday (April 16) noon.
DRU general secretary Mohi Uddin presided over the event and the organization’s president Syed Shukur Ali Shubo presided over the event. Members of the DRU Executive Committee and media personnel were present.
The 5 percent reduction in VAT at the import level ended on April 15. The mill owners have proposed to increase the price of edible oil due to expiry. In that case, the price of edible oil will be increased or not? In response to this question, Commerce State Minister Ahsanul Islam Titu said, I reduced the duty on oil by 5 percent. This reduced the price of oil by Tk 10 at the consumer level. That VAT exemption is set to expire on April 15. Our Tariff Commission is working on it. It is seen, at what price the millers are bringing oil raw material, how its price is falling etc. However, there is no chance of oil prices going back to the previous state, I can say that.
Incidentally, to reduce the price of daily commodities during Ramadan, the NBR reduced the VAT of 5 percent on the production and import level of edible oil at the local level on February 8. As the period of VAT exemption has expired, the mill owners have proposed to take the price of oil as before.
The mill owners wrote to the commerce secretary yesterday on Monday to raise the price of oil. There, the price of 1 liter of bottled soybean oil is proposed at Tk 173, 5 liters at Tk 845 and the price of open 1 liter of palm oil is proposed at Tk 132.
When asked about this, the state minister for commerce said, “I don’t know anything about the letter.” I haven’t received the letter yet. If sent, go to the office to see.
Alternatively trying to import the product:
The State Minister of Commerce said that the ongoing tension between Iran and Israel in the Middle East does not increase the price of import-dependent products in the country, so that they are trying to import products.
Ahsanul Islam Titu said, Russia-Ukraine, Hamas-Israel or Iran-Israel attacks, these are international events. However, due to all this, the price of fuel increases. This increases the cost of transportation, which affects various products. A crisis is created in import-export. However, Iran’s attack on Israel was sudden, we did not know that.
He said, the Middle East is important. Fuel oil and other products come from there. I don’t know if Israel will retaliate against Iran or not. However, all things considered. Due to these things, we are trying to keep the import and supply system in place so that the price of products does not increase.
The state minister said that the government is consumer friendly. By no means would I call the government business-friendly. We will give maximum benefits to merchants, as long as they help the consumer and stay within the rules. We want to work in the interest of the people, so that the common man is satisfied.
He said that the major task of the Ministry of Commerce is to control the price of goods. Along with this, I am working on import-export, bilateral policy. Tariff policy is being worked on, import-export policy has been finalized. Will officially launch (officially start). We are multifaceted. That’s why I want your help.
Permanent stores will be constructed to ensure the sale and supply of TCB products:
The State Minister for Commerce said that a permanent store will be built to ensure the sale and supply of Trading Corporation of Bangladesh (TCB) products. He said TCB usually offers four to five products at a time. But, many times it happens that if one product is late in arriving, the DCs hold back the rest of the products saying that they will give all the products together. But, when I do the fixed store, when the goods go to the store, the goods will be sold.
When asked about the fact that TCB is sometimes having problems in the supply of goods, the Minister of State for Commerce said that TCB was started to ensure the supply of goods and services on an urgent basis. We are working to bring it into a framework. We had no warehouse of our own. Any product needs to have buffer stock to maintain uninterrupted supply. We need warehouse for buffer stock. We have built a new warehouse of 40 thousand square feet in Chittagong. Having warehouses in various departmental cities. We will try to build buffer stock very quickly. I will be sure if we have a buffer stock of one month or two months.
Ahsanul Islam said that sometimes there are problems in the supply of TCB products due to three reasons. Our three reasons are – one. As there is no buffer stock, we have to buy and sell our products. We do not have buffer stock even at departmental level. Second. We do not have storage for storage and third. Dealers also do not have their own provision to keep the product for 15 days or one month. Due to these three reasons, delivery of TCB products is taking seven or 10 days back and forth.
Various benefits available for three years after transition from LDC:
Ahsanul Islam said, 2026 will be the transition from least developed to developing country (LDC). For that we will get various facilities for three years. As a result, the next five years are very challenging for us. At the same time, the facilities that we used to get, will not be available in LDC. That’s why we have to prepare now. We have to increase our exports. Communication with different countries should be increased. Discussions have been held with the commerce ministers of six countries so far. They are keen to trade and invest with us. So far we have discussed with many countries to do FTA.
What initiatives have been taken to protect the industries of our country after transition from LDC? In response to such questions, the Minister of State for Commerce said that each relevant ministry is working for research on this matter. We will only make the changes. The rest of the work has to be done by the concerned ministry. We have a policy to do what we do with free trade agreements keeping our local industry and employment in mind. I will discuss with the concerned ministry. Hence, LDC is nothing to worry about. FTA will be done with understanding. FTAs will be done in such a way that domestic companies do not suffer losses.
How will the subsidy or benefit be given after becoming an LDC? In response to this question, he said, according to WTO law, Bangladesh will not give subsidy. Bangladesh will give subsidy according to its own strategy. No such decision will be taken, in which the local businessmen of the country will face loss. It is not necessary to accept what the WTO says. India has not removed their agricultural subsidies.