New duty rate takes effect at Chittagong port, average cost increases by 41pc

Chattagram Bureau :

A notification imposing a new duty rate at the Chittagong port has been issued.

The notification was issued in the early hours of Monday, which states the new duty fee will take effect from Monday.

Analysing the information given in the government notification, it has been found that the duty rate has been increased by 41 per cent on average as compared to the past.

The duty fee for container transport has been increased the most.
From now on, the traders will have to bear an additional duty of Tk 4,395 per container (20 feet). The traders will have to carry the cost to get port services too.

The proposed duty was approved by the finance ministry on 24 July.
The port users raised objections over the proposal to raise the duty rate by 41 per cent at once.

Later, a discussion was also held with the port users at the initiative of the shipping ministry.

However, the notification was issued without taking the objection of the port users into account.

As a result, the decision of the port authorities to increase the duty fee remains intact.

The main objection of the users was that increasing the duty by 41 per cent at one go will mount extra pressure on the consumers. The competitiveness of the export sector will decline.

Moreover, in the future, except for two terminals, all the port terminals will go into the hands of foreign operators.

As a result, if duties are increased, foreign operators will be the main beneficiaries.

Speaking to Prothom Alo regarding this, International Business Forum Chattogram president and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director, SM Abu Taiyeb said, “The readymade garment (RMG) sector will suffer the most due to the additional duty.