Tax facility for rice import extended to March

The reduced tax facility for rice import, which was supposed to end in December this year, has been extended for three months in a bid to bring down the prices of the staple to an affordable level.

The Internal Resources Division of the finance ministry issued a statutory regulatory order, also known as SRO, on Wednesday in this regard to allow traders to continue with the 15.25% taxes at the import level, instead of the regular 62%, until March next year.

The taxes include 5% regulatory duty, 5% advance income tax (AIT) and 5% advance tax (AT).

Importers of non-boiled atap rice (except aromatic rice) and boiled rice have been enjoying the facility since last August.

Earlier in June this year, the government cut import duties of rice to 25% from 62% amid a rapid surge in rice prices. 

National Board of Revenue officials hope that the latest initiative will help stabilise the rice market.

"We have extended the facility following a request from the Ministry of Food," a senior revenue official, wishing to remain unnamed, told The Business Standard.

Meanwhile, the government has approved 15 lakh tonnes of rice to stabilise the volatile rice market, but importers were in a dilemma because of the global dollar price hikes. 

Food ministry sources said only some 3.5 lakh tonnes of rice were imported in the first four months after the introduction of the tax facility.