News Desk: The government is going to reduce the tax applicable on 13 types of fuel oil in the budget of the next fiscal year 2023-24 to control the price of import-dependent fuel oil.
The National Board of Revenue (NBR) is going to reduce the import duty by 5 percent from the existing 34 percent to 29 percent.
According to NBR sources, currently there is a total of 34 percent customs duty on oil import including 10 percent duty, VAT 15 percent, advance tax 2 percent, advance income tax 5 percent. Including these duties and taxes, diesel and kerosene are being sold at Tk 109 per liter and octane at Tk 130 and petrol at Tk 125 per liter in the current market.
In order to reduce the price in the future or cope with the increased pressure of the international upward market, petroleum oil, crude oil, HBOC type motor spirit, aviation spirit and other spirits, spirit-like jet fuel, white spirit, naphtha, J.P-1 kerosene type jet fuel, J.P- Advance income tax is being withdrawn on 13 types of fuel including kerosene type jet fuel, other kerosene-like jet fuel, kerosene, light diesel oil, high speed diesel oil and furnace oil. That is, a policy decision has been taken to completely remove the 5 percent advance income tax.
Confirming the fact, a senior officer of NBR said that there is a direct impact on the price of oil and business and commodity prices. So the government has given extra attention to this sector. Besides, initiatives have been taken to solve the complications caused by oil taxation due to unexpected fluctuations in the price of fuel oil in the international market. Therefore, an attempt has been made to reduce the price of oil by reducing taxes. However, there are concerns about the upward trend of international markets. The government attempts to achieve the inflation target by controlling market prices.