The government plans to allow private companies to set up duty-free shops at international airports, sea and land ports alongside the public sector to help customers buy products at competitive prices.
The National Board of Revenue (NBR) has recently sent a proposal to the cabinet division, urging the government to ease the way for opening portside stores, which will also create jobs and give extra revenue, said an official.
The NBR has categorically urged the cabinet division to cancel two clauses of the regulations dated back 1985 that allow only the state-run Bangladesh Parjatan Corporation (BPC) to run such shops and ban setting up bonded warehouses by private owners.
In Bangladesh, there are three international airports in Dhaka, Chittagong and Sylhet, two seaports in Mongla and Chittagong, and over a dozen land ports including Benapole, the largest.
Activities of the ports have increased over the time, thanks to a steady growth of the economy, and the number of passengers using the facilities also went up many folds.
The NBR officials said duty-free stores could primarily be set up in the country's three major airports, two seaports and, if infrastructure supports, at land ports under private management.
The state-run BPC, however, will get priority in setting up such retail outlets, which normally enjoy exemptions from local or national taxes and duties.
According to the NBR, the Bonded Warehouse Licensing Regulations, 2008 can be used as policy in setting up the shops under private ownership.
In 1982, the cabinet division had decided to set up such shops at Chittagong and Sylhet airports, and others ports in the country. But three years later it imposed restrictions on setting up such shops by the private sector, empowering the BPC to run such commercial outlets.
In 2009, the cabinet scrapped the earlier decision and approved the private sector to help make a foray into the business. But the decision is still ineffective, as the existing regulations still only allow the BPC to open such shops and bar private parties to open bonded warehouses, the officials said.
Many private companies have already applied to obtain licences under the existing regulations. Some have even claimed that airport or land port authorities have leased places to them for setting up duty-free shops.
The NBR proposal said the number of travellers using the air and land ports has increased recently due to trade liberalisation, high foreign investment and the development of the tourism sector.
In this circumstance, duty-free shops can be set up to sell imported products to both inbound and outbound travellers in exchange of foreign currency under the bonded facility, the proposal said.
Meanwhile, three companies have been leased space in airports to set up duty-free shops, flouting the cabinet division decision taken in 1985.
The Internal Resources Division (IRD) of the finance ministry has investigated the issue and found that the Civil Aviation Authority has awarded the space for setting up shops. No bond licence has been obtained from the IRD to run the shops.
News Source:
The Daily Star