Tax benefits not reflected in market, prices of 63 daily essentials unchanged: CAB

In a statement sent to the media on Sunday (July 5), CAB Central Committee Vice President S M Nazer Hossain said that in this year's budget, the source tax on 63 daily essentials, including paddy, rice, wheat, flour, onion, garlic, ginger, sugar, edible oil, fish, meat, and seeds, has been reduced from a maximum of 5 percent to 0.5 percent. Similarly, the source tax on all types of edible oil has also been reduced, aiming to lower import and marketing costs so that consumers benefit.

He said that CAB had welcomed this initiative at the time of the budget announcement. However, traders are now claiming that since the products currently in the market were imported at higher prices, prices cannot be reduced until new shipments arrive. Yet, the prices of products on which duties have been increased have been raised quickly. He alleged that this clearly shows the dual standards of traders.

CAB claims that due to a lack of effective monitoring by market surveillance agencies, the benefits of tax cuts are not reaching consumers. In many cases, instead of taking strict action against dishonest traders, the administration's lenient stance is increasing market instability.

The organization further stated that although the budget withdrew the 5 percent regulatory duty on all types of imported spices and dates, its positive impact has not yet been seen in the market. Instead, the prices of several products, such as cinnamon, cloves, nutmeg, poppy seeds, cashew nuts, and almonds, have increased.

According to CAB, if the government provides tax relief and sacrifices revenue, but consumers do not receive the benefit, the main objective of the budget will be undermined. Therefore, the organization has called for strengthening market surveillance to ensure the real benefits of the tax cuts.