businessnews24bd.com

Consumers are failing to reap the benefits of the tax cuts and exemptions on essential commodities announced in the national budget due to a lack of effective market monitoring and a double standard practiced by traders, the Consumers Association of Bangladesh (CAB) alleged on Sunday.

The allegation was made in a press statement issued to the media by SM Nazer Hossain, Vice President of the Central Committee of CAB.on Sunday.

In the national budget, the government slashed the source tax on 63 essential commodities—including paddy, rice, wheat, flour, livestock, poultry, fish, onion, garlic, ginger, salt, sugar, edible oil, and seeds—reducing it from previous brackets of 5%, 2%, and 1% down to a uniform 0.5%. Additionally, the source tax on all types of edible oil was reduced from 1% to 0.5%. While the government’s stated objective was to lower import and marketing costs to give retail consumers financial relief, CAB noted that consumers are being completely deprived of these benefits in reality.

CAB had initially welcomed the budget, hoping its implementation would provide relief to ordinary citizens. However, traders are now employing a double standard to keep prices high. Merchants argue that current market stocks were imported at older, higher rates and claim prices will only drop once new shipments arrive. Conversely, for any product where the budget increased import duties, traders immediately hiked retail prices, even though those items had been imported earlier at lower costs.

The consumer rights body highlighted that volatility in the kitchen markets remains uncurbed due to a lack of coordinated and visible enforcement by market monitoring agencies. Instead of playing an active regulatory role to stabilize prices, the government continues to maintain a business-friendly stance. In many instances, district administrations are showing undue leniency toward unscrupulous traders instead of taking strict punitive measures, directly harming consumer interests.

Furthermore, the budget withdrew the 5% regulatory duty on all imported spices and dates. Despite this revenue concession, the benefits are invisible in the retail market. Instead, the prices of several essential spices—including cinnamon, cloves, mace, poppy seeds, cashew nuts, and almonds—have actually escalated. The retail price of dates also shows no positive impact from the tax exemption.

CAB warned that while the government has compromised its revenue collection by offering tax exemptions, the entire policy will fail if ordinary consumers do not benefit. Despite official assurances that prices of tax-exempted products would fall post-budget, no such reduction has materialized for essentials, including rice.

This persistent inflation has triggered widespread public skepticism regarding the actual implementation and success of the government’s self-proclaimed "life-friendly budget."